23 Mar 2022 -
 General

Chipmakers face two-year shortage of critical equipment – FT

The demand for semiconductor chips continues to grow globally, outpacing supply constraints. Now, ASML, the keystone producer of the lithography machines used to make advanced semiconductor chips, has said that it anticipates a two-year shortage for the industry due to shortages of necessary parts for its machines, reports Financial Times.

 “Next year and the year after there will be shortages,” said Peter Wennink, CEO of ASML. “We’re going to ship more machines this year than last year and . . . more machines next year than this year. But it will not be enough if we look at the demand curve. We really need to step up our capacity significantly more than 50 per cent. That will take time.”

“Today this is a constraint,” Pat Gelsinger, CEO of Intel, told Financial Times, explaining that building out the existing chip factory would take two years to do. “Then you start to fill it with equipment in year three or four.”

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