According to Taiwanese manufacturers, the present semiconductor shortage may persist well into the first half of 2022 as multiple different sectors of the industry are handicapped. The manufacturing capacity at foundries isn’t the only limitation. In fact, the packaging and testing segments are also severely hindered, resulting in bottlenecks throughout the entire manufacturing and testing pipeline.
Supply at foundries is very tight. Capacity in the chip packaging and testing space is also tight. The chip supply bottleneck could still remain unresolved in the first half of 2022.James Yang, President of the Foxconn Affiliate
Lately, the chip shortage has extended from microprocessors to display circuits, power management chips needed in 5G headsets, and even automakers. Automobile companies are expecting a drop of $61 billion in sales in March alone.
As reported earlier, one of the primary reasons behind the small-scale expansion in production is due to logistics and supply chain delays. The delivery times for new manufacturing equipment have been delayed by as much as a year, if not longer. With this many bottlenecks in place, most companies can do very little to bolster supply.
According to Yang, chip packaging equipment now takes up to 11 months to ship. As a result, chipmakers aren’t expanding their capacity for 8-inch wafers which is making it even worse and extending the rut to other markets such as automobile, touch panels, displays, 5G equipment, etc