The Global Semiconductor Shortage Persist for more than Expected Time

The long waiting periods for popular cars may remain a norm well into 2022, as the semiconductor shortage for the automotive industry causing these delays won’t be resolved any time soon, said some of the largest chip makers and analysts.

Chipmakers globally are working overtime and investing in additional capacities to bridge the current shortfall. But new plants take time to become operational and it could take as long as two years before supply can match the current demand levels.

“The supply shortage is unlikely to resolve in the short term,” Vinay Raghunath said, partner and automotive sector leader at EY India. “Semiconductor manufacturing is a globally intertwined ecosystem, which makes the supply chain vulnerable to macroeconomics, geopolitics and natural blips.”