The semiconductor supply chain has become so tangled that its head is biting its tail. ASM International is one company that supplies gear needed to make chips. In an interview with Nikkei Asia the Dutch company’s boss, Benjamin Loh, said lead times for producing its machines have extended because it is having trouble finding enough chips itself.
, which makes lithography machines for chipmakers, has also warned of problems increasing its output.
Another wrinkle is that ASM International’s biggest customers focus on producing cutting-edge chips. Yet the worst shortages are in less advanced semiconductors – the ones AMS International is having to fight over with other users, including carmakers . History shows that chip shortages resolve themselves thanks to market forces and innovation. But today's supply chain woes will take a while to straighten out.
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