21 Sep 2022 -

Analysis: How the semiconductor shortage could last into 2024

semiconductor chip

It could take years for the semiconductor market to fully rebalance, and it’s hard to say when the situation will improve for buyers. That’s the view from Financial Management magazine during an interview with Indian procurement and supply-chain expert, Mohit Sharma, who advises Fortune 500 companies.

“It’s not coming to an end in 2023, if you ask me, honestly,” he said. “Because the entire gestation period, the cycle time [for manufacturing] is wrong. There is a phenomenal amount of complexity.”

Sharma laid out the causes, effects, and solutions to this problem, along with another expert, Lincoln Clark, the US-based head of KPMG’s global semiconductor practice, in separate interviews with FM magazine, which you can read more about here.

Given the importance and scale of the problem, national governments have initiated multibillion-dollar responses. At the end of July, the US Senate passed a bill to boost domestic semiconductor production with industry subsidies of $52 billion.

“We may be at this transition point where the supply constraints are still there, somewhat, and demand in some end markets is beginning to realign to reflect post-COVID and other macroeconomic factors. However, there is now funding and long-term plans to address future needs,” Clark said.

In a recent KPMG survey of semiconductor industry executives, around 65% expected the shortage to “ease” by mid-2023.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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