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This Latest Prediction Is the Ray of Sunshine the World Needs on the Chip Shortage

As the world’s number one contract electronics manufacturer, Foxconn knows precisely how awful the chip shortage has been so far.
Foxconn expects the chip inventory to improve 6 photos
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Companies in pretty much every industry out there have struggled to reduce the disruptions caused by the limited semiconductor inventory, and more often than not, their aggressive measures came down to a temporary halt of the production lines.

Foxconn, however, has fought the prolonged production problems due to various disruptions caused not only by the chip shortage but also by the lockdowns in China.

However, company chairman Liu Young-way believes it’s all coming back to normal, with the second half of 2022 finally producing an improvement in terms of chip inventory. The company hopes the shortage of material supplies to no longer be a problem, which for its long-term strategy is kind of critical given it’s now investing big in EV manufacturing.

But of course, predicting the end of the chip shortage is more often than not just a guessing game.

The chip crunch doesn’t only come down to investing in production capacity, as other factors, such as the geopolitical tensions and the shortage of other materials do nothing more than fuel the crisis.

Intel, for instance, doesn’t believe the chip shortage can come to an end earlier than 2024, and to prove this point, the company’s CEO has recently revealed another problem that semiconductor manufacturers are currently struggling with.

While expanding the capacity is something that everybody is willing to do in the long term, the lack of equipment required for the production of chips makes the whole process much more difficult, therefore pushing back the highly anticipated end of the crisis.

This is the reason Intel says we shouldn’t hold our breaths for a pre-2020 inventory in terms of chips, which means the world is likely to continue the struggle in 2023 as well.

 
 
 
 
 

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