Car chip shortage to abate, smartphones could be next: industry execs

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The semiconductor shortage that has gripped the world may last well into 2022 and hit smartphone production next, foreshadowing deficient supply for a range of appliances and equipment, industry executives say

The automotive sector has suffered the most this year but supply to the sector could improve relatively soon, with China taking up some production demand that Taiwan could not meet, ING Greater China chief economist Iris Pang told Reuters Global Markets Forum this week.

Taiwanese semiconductor companies have boosted production in China as blackouts and ongoing COVID-19 social distancing measures disrupted factory output and port operations in Taiwan, she said. "China gained 5% on the chip shortage in terms of GDP - Taiwan semiconductor companies have planned well and built large factories in mainland China," Pang said, predicting that smartphone makers will be the next segment to face disruptions.

"Taiwanese semiconductor companies are tailoring making chips for autos, so the chip shortage should be solved for autos in a few weeks, but other electronics' chip shortage problem persists," Pang said, adding that could delay shipments of some new model smartphones.

 

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