Semiconductor supply crunch to last 3-5 years – report

Semiconductor supply crunch to last 3-5 years – report

KUALA LUMPUR (Nov 7): The semiconductor industry is expected to experience a supply crunch to last 3-5 years, as the global semiconductor supply chain is set to worsen after President Joe Biden’s administration decided to impose curbs on the export of chip-making technology to China.

In a report last Friday (Nov 4), CNBCTV18 cited experts as saying that escalating prices coupled with a more severe supply crunch is the unwelcome fallout of the US Federal government’s decision to restrict exports of chip-making equipment to China.

The report cited John Sicard, CEO at Canadian-based Kinaxis, a supply chain management firm as saying that as things stand today, chips that used to cost US$5 go all the way up to US$85, which is proving to be a real problem,

"Even if customers are willing to pay, manufacturers simply can’t make enough for everyone.

"In my opinion, the semiconductor supply crunch is here to stay for another three to five years,” said Sicard.

In early October, the United States introduced an unprecedented and controversial set of rules on American suppliers of chip-making equipment.

The regulations mandate that all US-based companies cease supply of chip-making equipment to Chinese chip-makers unless they obtain a license in advance.

These rules mostly apply to relatively advanced chips, including NVIDIA’s A100/H100 and Intel’s GPU.

http://www.theedgemarkets.com/article/semiconductor-supply-crunch-last-35-years-%E2%80%93-report