STAMFORD, CT – The worldwide semiconductor shortage will last through this year and not recover to normal levels until the second quarter of 2022, according to Gartner. Substrate capacity constraints could extend to the fourth quarter of next year.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices,” said Kanishka Chauhan, principal research analyst, Gartner.

Originally, the chip shortage affected power management devices, display devices and microcontrollers fabricated on legacy nodes at 8" foundry fabs, according to reports. There is now a shortage involving substrates, wire bonding, passives, materials, and testing.

Gartner recommends four actions for OEMs with respect to semiconductors:

1. Extend supply chain visibility
2. Partner with similar entities and approach chip foundries and/or OSAT players together to gain leverage
3. Track leading indicators
4. Qualify a different source of chips and/or OSAT partner and create relationships with distributors, resellers and traders.

“Since the current chip shortage is a dynamic situation, it is essential to understand how it changes on a continuous basis,” said Gaurav Gupta, research vice president, Gartner. “Tracking leading indicators, such as capital investments, inventory index and semiconductor industry revenue growth projections as an early indicator of inventory situations, can help organizations stay updated on the issue and see how the overall industry is growing.”

• Prev
• Next