The chip shortage could be far from over. Toshiba, which supplies components for automobiles, consumer electronics and industrial machines , says it won't be able to meet demand from energy regulators for a year and in some cases the end of 2022. This dismal forecast threatens the chances of recovery of the battered semiconductor sector for this year.
According to Reuters, the director of one of Toshiba's chip plants, Takeshi Kamebuchi, says that power regulators are considered “a commodity” and do not require an advanced production system. However, due to material shortages and high demand , the company cannot fulfill the orders. “The supply will continue to be very scarce until, at least, September of next year,” he assures.
Although power regulators are “cheap,” they are no less important than high-tech semiconductors, which are also affected by chip shortages. Kamebuchi explains that if the processor is the brain of an electronic device, the components related to power control are like the heart and vascular system. That is, in many cases, they are indispensable.
Facing the chip shortage
Photo by Maxence Pira on Unsplash In order to deal with the shortage of chips, Toshiba plans to invest around 545 million dollars over a period of three years to boost the production of this type of semiconductor. Although not immediately contemplated, the company could make additional investments to build a new factory. The latter would be in line with the plans of TSMC, which also plans to build new plants.
“Usually we get orders weeks and months in advance. But we are currently facing more and more inquiries for half a year into the future and beyond, “the executive tells Reuters. However, investors call to invest with caution due to the fear that over time the orders driven from the coronavirus pandemic will decrease.
The truth is that the industry continues to suffer from the consequences of the chip shortage. General Motors, the largest carmaker in the United States, said last Thursday that it will temporarily close several of its factories in North America due to a lack of essential components. Volkswagen, for its part, is also analyzing a new production cut.
But it's not just about the auto industry. The world of video games has also been hit. At present it is an impossible mission to get a new generation console, be it PS5 or Xbox Series X. Also, also affected by cryptocurrency mining, getting a graphics card at a regular price is something very difficult to achieve.
