Why the chip supply is in shortage?

Mar 26,2021

Days ago, the semiconductor industry followed a syllogism, from inventory to the digestion of inventory to re-inventory.

According to the development law of semiconductor market, under the condition of constant total supply, the demand is strong and weak, and there is dynamic change from strong to weak or from weak to strong.

But now this dynamic appears imbalance and contradictory point, the periodic law of chip out of stock has changed greatly.

The syllogism no longer applies after 2016, leading companies to run up inventories when prices are high, creating an imbalance between supply and demand.

 

Shortages of raw materials and rising prices are one of the main causes.

2019, the UN designated "sand", the most basic material for semiconductors, as a "Shortage material". The silicon in the sand is the basic material for making semiconductor device, the entire Semiconductor industry will face price increases from "Sand to chips”.

 

In addition to raw materials, demand blowout, chip capacity and market demand mismatch with each other.

On the one hand, the market has entered the "Personal Semiconductor" ERA, 10 years ago a person only used for a smartphone, now in addition to mobile phones, but also computers, watches, bracelets, headphones and other products. In the future, the phenomenon will be more obvious.

On the other hand, Zhang Ming, a security chip practitioner, told that the global epidemic has given rise to the Home Office and study economy, with demand for 5G, tablets, laptops and mobile phones soaring and production capacity upstream of the chips tilting toward it.

 

The terminal business snatches the chip, the manufacture enterprise snatches the wafer.

The demand of advanced chip increases overall, cutting-edge wafer fab and sealed test factory will give priority to high-end products.

 

At the same time, capacity expansion will not be easy.

It is learned that wafer fabrication and sealing plants are super large, capital intensive industries that need to keep production lines running 24 hours a day to maximize profits, and that capacity growth will be in the order of one billion units.

“On the one hand, it will take time to expand capacity, and on the other hand, the original chip factories have increased capacity substantially compared to last year, but they still can not meet the growing market demand.”

 

The lack of chips and the uncertainty caused by price increases led to panic hoarding of goods in the market, all parts of the order increase largely


Changes in international relations have also exacerbated the chip panic phenomenon..


"Chip shortage" situation has not been eased, a snowstorm, not only swept Texas, but also to the global makes chip shortage phenomenon worse.

February, the US state of Texas was hit by a supercold snap that caused severe power shortages and blackouts, including the shutdown of the Austin Fab Plants of Samsung, NXP and Infineon, semiconductor makers.


Source from AI Juejinzhi

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