Chipmaker AT&S expects shortages to last another 12 months

By Reuters

<div> <p><span class="caps">KUALA</span> <span class="caps">LUMPUR</span> – Austria-based chipmaker AT&S sees the global chip shortage taking at least another year to stabilise and for production capacities to cover demand, its chief executive said on Thursday.</p> <p>Chief Executive Officer Andreas Gerstenmayer said the situation was a “very dynamic volatile environment”. In the company’s view, it will at least take another 12 months to stabilise and bring up capacities.</p> <p>“We are now in a very volatile environment that is completely destabilised and this needs to be re-stabilised, and the capacities need to be added to the market,” he said during a briefing.</p> <p>The manufacturer is setting up a plant in Malaysia that will begin construction next month, and start production towards the end of 2024. It plans to invest 8.5 billion ringgit ($2.05 billion).</p> <p>Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages – exacerbated by years of under-investment in basic chip production, while high-end semiconductors were favoured – will last at least two years.</p> <p>Gerstenmayer said the shortage was not solely caused by the <span class="caps">COVID</span>-19 pandemic as there were already uncertainties from 2019 that caused the industry to miss an investment cycle.</p> <p>“Then <span class="caps">COVID</span> came and with a very sharp downturn, the global supply chain was completely cleaned up. Everyone was very cautious, uncertain, and everyone tried to reduce the capacities they had,” he said.</p> <p>($1 = 4.1480 ringgit)</p> <p/> </div>