Semiconductor manufacturing equipment supplier, Applied Materials, expects demand for parts will outstrip supply for the next several quarters, according to this report.
They are working through a growing backlog of orders from consumers in the automotive and industrial sectors, among others.
“Demand for Applied’s products is still higher than our ability to fulfill it and our backlog continues to grow,” CEO Gary Dickerson was reported to say.
The opinions of semiconductor equipment manufacturers are noteworthy, as they represent views closer to the ‘head’ of the supply chain, not the tail.
Applied Materials is starting to see incremental improvements in supply after making efforts to up manufacturing, added Applied’s CFO, Brice Hill. He said that the company has “added significant investments in talent to our supply chain teams to resolve bottlenecks and to improve our inventory and overall output.”
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