"Global Semiconductor Supply Shortage to Persist Beyond Next Year"

[Asia Economy Reporter Su-yeon Woo] The global semiconductor supply shortage is gaining traction as a phenomenon that may continue beyond next year or even until the year after. Concerns are continuously raised that the shortage, affecting everything from automotive semiconductors to electronic devices and home appliances, could disrupt global manufacturing production.

According to foreign media on the 10th, on the 4th (local time), Tom Caulfield, CEO of GlobalFoundries, the world's third-largest foundry (semiconductor contract manufacturing) company, forecasted in an interview with economic media CNBC that "the global semiconductor shortage could continue beyond next year."

He also revealed plans to double the scale of investment in response to this supply shortage. He stated, "The semiconductor industry had expected an annual growth of 5% over five years, but now the forecast has doubled," anticipating that the supply shortage caused by the industry's demand forecasting failure will continue for some time.

As the semiconductor shortage intensifies, not only the automotive industry but also the home appliance and IT industries such as smartphones are experiencing production difficulties. Earlier, Liu Yangwei, chairman of Foxconn, Apple's contract manufacturing specialist, mentioned the production impact due to semiconductor supply-demand imbalance during a quarterly earnings announcement. He said, "Not only automotive semiconductors but other semiconductor sectors are also affected," adding, "The global semiconductor shortage is likely to continue until the end of 2022."

Although global companies are expanding foundry investments and governments worldwide have introduced semiconductor self-reliance policies, it is expected to take considerable time to resolve the actual supply shortage. Moreover, the expansion of non-face-to-face demand due to COVID-19 and the recovery of the economy and consumer sentiment following vaccination overlap, suggesting that the global semiconductor shortage will persist for a while.

Jin Dae-je, a domestic semiconductor expert and chairman of Skylake who previously worked at Samsung Electronics, also presented a forecast at a semiconductor industry seminar hosted by the Federation of Korean Industries at the end of last month, stating that it will take several years to stabilize semiconductor supply and demand. Chairman Jin said, "For automotive semiconductors, which require safety guarantees, a significant amount of time is needed just to ensure quality," adding, "It will take at least one to two years for the supply of automotive semiconductors to become smooth again."