In short: Chip makers are spending money to increase capacity to meet the global surge in semiconductor demand. Unfortunately, this is not a task that an infusion of cash can solve overnight, as supply chain partners manage the shortages themselves.
One such example ASML, a Dutch multinational corporation that manufactures lithographic machines used in the production of advanced semiconductors. Their machines are used to etch silicon wafer circuits, and according to at least one technical analyst, ASML is the single most important company in the semiconductor supply chain.
This was announced by ASML CEO Peter Wennink. Financial Times that they will ship more cars this year than last year, and more cars next year than this year. However, “it won’t be enough if we look at the demand curve,” he said.
“We really need to increase our capacity by more than 50 percent. It will take time,” Wennink added.
Intel chief executive Pat Gelsinger said he was in direct contact with Wennink about the shortage. The chip maker even sent its experts to ASML to help speed up production.
“Today it’s a limitation,” Gelsinger said. Fortunately, there is still time to resolve this issue, as it will take at least two years for Intel to build the chassis of the new factory. “Then you start filling it up with equipment in the third or fourth year,” Gelsinger added.
Wennink agreed with Gelsinger’s assessment of the situation, but emphasized that his own suppliers need to increase them production to meet increased demand.
Carl ZeissThe optical company that makes lenses for ASML equipment will have to produce “significantly more lenses,” Wennink said. Before that happens, they will need to “build clean rooms; they need to start asking permission; they need to start organizing the construction of a new plant. hire people. And then… it takes over 12 months to make a lens.”