17 Dec 2020 -

IC shortages: Two main causes, says SMIC

The shortage of ICs (integrated circuits) is being driven by market demands far exceeding expectations as well as production that is unable to keep up with demand, according to comments from Peng Jin, Senior VP of Global Sales and Marketing of China’s biggest chipmaker, SMIC (Semiconductor Manufacturing International Corporation).

5G has promoted the growth of demand for chips in mobile phones and base stations. According to forecasts, global 5G mobile phone shipments will reach 200 million units this year, 550 million units next year, and more than 1 billion units in 2023.

In addition to 5G, automotive networking, IoT/smart home demand continues to increase, and the Covid-19 epidemic has driven the substantial growth of servers and PCs, which has also led to a sharp increase in market demand for ICs.

SemiMedia reported Peng Jin’s comments from a speech at the ICCAD 2020 Summit Forum earlier this month in which he emphasized that from the perspective of investment returns, it is difficult for commercial expansion to keep up with market demand.

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