08 Jul 2021 -

Structural problems in semicon industry could last until 2023

The high demand for 5G mobile phones, laptops and automotive electronics will continue not only this year, but may also continue beyond 2022, according to comments from SC Chien, co-president of UMC (United Microelectronics Corp), reported here.

SC Chien pointed out that the growth rate of market demand is much greater than the rate of increase in production capacity. This structural problem is difficult to solve in the short term, and the shortage of semiconductor production capacity may continue until 2023.

SC Chien believes that the solution to the supply shortage is to increase production capacity. How ever, he said that even if manufacturers start to invest in new production lines now, they will not be able to release new production capacity until 2023. In addition, UMC predicts that this year’s average selling price will increase by about 10% compared to last year.

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