Semiconductors may continue to be in short supply in 2022, Material and labor costs have risen

A report issued by the research organization IPD International shows that the shortage of semiconductor production capacity will continue until 2022, and the oversupply will not have a chance until at least the second half of 2022.

Among the semiconductor companies interviewed and surveyed, only 10% of the companies indicated that the inventories of their cooperating suppliers are increasing, and 4 out of every 5 companies indicated that they have difficulty finding skilled workers to increase production capacity.

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65% of the semiconductor companies surveyed expect that labor costs will rise in the future, while only 23% of the companies believe that the difficulty of recruiting in the future will be reduced. Facing the dilemma of not being able to recruit people, 46% of companies said they have provided training for existing employees to fill these vacancies, and 44% of companies said they would raise their salary levels to try to attract more new employees.

To make matters worse, 90% of the interviewed companies said that the cost of materials has increased in recent months, which is very unfavorable for many industries that require semiconductor chips. Research firm AlixPartners had earlier predicted that the auto industry would generate $210 billion in losses in 2021. For semiconductor companies, this also means that their profit space will be further compressed.

The global chip shortage this time has a great impact on the GPU and CPU, and on the traditional automotive industry. And now it seems that the shortage of chips will not be alleviated at least in the first half of 2022.