Moscow. June 7. INTERFAX.RU – The global shortage of microcircuits, which negatively affects the automotive industry and threatens the supply of technological products for consumer use, will last at least another year, warns Flex, one of the world's largest contract electronics manufacturers.
Flex, based in Singapore, has more than 100 manufacturing sites in 30 countries around the world and specializes in the production of electronics for other companies. Its clients include the American automaker Ford Motor Co., the British technology group Dyson, the British online retailer Ocado Group and the American IT and telecommunications solutions provider Hewlett Packard Enterprise. The company's position in the supply chain makes it a major chip buyer.
Flex's chief procurement and supply chain specialist, Lynn Torrell, said the manufacturers the company relies on for semiconductor products are pushing back their predictions for when the shortage ends.
“With demand so high, [the end of the deficit] is expected in mid to late 2022, depending on the product. Some expect [the deficit to continue] in 2023,” Lynn quoted the Financial Times as saying.
As noted by the publication, Flex's forecast for the timing of the end of the shortage is one of the gloomiest since manufacturers around the world faced disruptions in the supply of semiconductor products. The chip shortage is forcing auto companies and consumer electronics manufacturers to rethink their global supply chains.
Many companies are looking for ways to guarantee supply of chips in the face of scarcity, including through upfront payments. According to the FT, American electric vehicle manufacturer Tesla Inc. is considering buying a semiconductor plant.
Asian electronics manufacturers have recently warned that chip shortages are starting to spread to TVs, smartphones and home appliances. The situation is exacerbated by US sanctions against Chinese technology companies, which have led China to reduce semiconductor imports.
