Global Chip Shortage may persist till 2nd Quarter of 2022: Gartner

According to Gartner Inc., the global shortage for semiconductor will persist through 2021 and is likely to stretch till the 2^nd quarter of 2022. Though, the shortage of semiconductor has disrupted the supply chain and it will remain a constraint for production of many electronic equipment types in 2021. Foundries have raised wafer prices, and in turn, chipset companies are increasing device prices.

As per Gartner, the dearth of chip started with devices, like power management, display devices, and microcontrollers, fabricated on legacy nodes at 8-inch foundry fabs which have limited supply. It further added, the dearth has now widened to other devices, and there are capacity limitation and scarcity for substrates, wire bonding, passives, materials and testing, all are part of supply chain beyond chip fabs. These are highly commoditized with minimal flexibility to invest firmly on short notice.

The suggestions given by Gartner to OEMs that are directly or indirectly dependent on semiconductors, must take 4 key actions to alleviate the risk and revenue loss during the shortage of chipset globally. It includes extension in supply chain visibility, guaranteeing supply with companion model or pre-investments, tracking key indicators and diversifying supplier base.