Lack of Visibility in Chips Shortage ‘Unprecedented’: ST CEO
STMicroelectronics, like virtually all chip companies, is operating against “a backdrop of strong demand,” while “stretching the global supply chain,” said CEO Jean-Marc Chery on a Q2 call Thursday. “We have continued to work closely with our customers across all…
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verticals and channels to adapt to this difficult allocation situation. At the same time, we were and are optimizing our investments to increase our manufacturing capacity.” COVID-19 “continues to be a challenge for the world,” further exacerbating the well-documented supply chain woes, said Chery. A new wave of COVID-19 forced the recent shutdown of ST’s assembly plant in Muar, Malaysia, he said. “Following approval from the authorities, we resumed operations after 11 days of closure.” The global semiconductor shortage will last “up to next year, minimum, especially on the onboard electronics,” he said. “Related capacity” in the sector is “very saturated and will be saturated for next year as well,” he said. The lack of visibility is “unprecedented,” and booking trends are “really consistent with this effect,” he said.