Moody's Analytics said the trend towards remote work that accelerated due to COVID-19 movement restrictions has given rise to heightened demand for semiconductor chips.
"Given the capital-intensive nature of their production process, supply has not been able to keep pace with the increase in demand," it said in a note today.
It noted that the world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co, has been raising prices across the spectrum, some by as much as 20 per cent, while three Chinese chipmakers have been fined by the Chinese government for abnormally high price increases.Read More »
Semiconductor shortages and the delayed packaging and testing of the chips will cause production of global light vehicles to drop by five million this year, data firm IHS Markit said on Thursday, marking the biggest cut to its outlook in nine months.
Citing supply chain challenges, IHS said it was cutting its light vehicle production forecast by 6.2% for 2021 and 9.3% for 2022, to stand at 75.8 million units and 82.6 million units, respectively.
Packaging and testing operations within the semiconductor sector in Malaysia were impacted due to the government's lockdown measures in early June, IHS said, compounding difficulties in an already constrained supply chain.
"Our interpretation of the situation in MalaRead More »