August 18, 2022

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Semiconductor companies can’t discover sufficient staff, worsening chip scarcity

Enlarge / Don’t anticipate cheaper chips anytime quickly.

The semiconductor chip scarcity that has so vexed the auto business seems set to proceed for fairly a while, according to a new industry survey. More than half of the businesses that have been surveyed by IPC stated they anticipated the scarcity to final till not less than the second half of 2022. And proper now, the chip scarcity is being exacerbated by rising prices and a scarcity of staff.

According to the survey, 80 % of chip makers say that it is turn into onerous to search out staff who should be specifically skilled to deal with the extremely poisonous compounds utilized in semiconductor manufacturing. The downside is worse in North America and in Asia, the place extra firms are reporting rising labor prices in comparison with these in Europe.

But solely a 3rd of Asian chip makers say they’re discovering it tougher to search out certified staff, in comparison with 67 % of North American firms and 63 % of European firms. That might effectively clarify why fewer Asian semiconductor firms (42 %) are reporting growing order backlogs, in comparison with 65 % of North American and 60 % of European firms.

Just underneath half (46 %) stated they have been retraining their present staff to fill the gaps, and almost as many (44 %) stated they have been growing wages to make the roles extra enticing. Other common measures embrace extra versatile hours and extra coaching alternatives for staff.

Even extra of the businesses surveyed stated that rising materials prices have been an issue, too—90 % globally, with almost as many suggesting that pattern will proceed for an additional six months not less than. IPC says that chip makers’ revenue margins are shrinking consequently.

That’s most likely already being felt by a few of their clients. According to a report by AlixPartners, the auto business will lose out on $210 billion in income in 2021, forecasting a shortfall in manufacturing of seven.7 million automobiles worldwide. That’s bought the US authorities’s consideration, too. On Thursday, Commerce Secretary Gina Raimondo is assembly automakers and tech companies, in addition to semiconductor firms, to see if the federal authorities may help.

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