Pegatron: Chip shortages may take at least two years to resolve foundries encourage customers to migrate to 12 inches

Tong Zixian; Image source: Electronic Times

Jiwei Network News (Wen/Stan), Pegatron Chairman Tong Zixian said that the shortage of chips caused by insufficient production capacity of 8-inch and mature processes may take at least two years to solve.

According to the Electronic Times, Tong Zixian said that the foundry has begun to implement capacity expansion projects, but their previous cautious attitude has led to limited growth in the overall 8-inch and mature process production. The surge in demand for electronic devices cannot be met immediately, as it will take some time for more foundry capacity to come online.

Tong further noted that foundries are encouraging their IC design customers to migrate to 12-inch production lines as they face more difficulties in procuring equipment to expand their 8-inch fab capacity. But there are still many design factories that are reluctant to transition to 12-inch wafer fabrication.

In view of this, Tong Zixian believes that in the short term, the chip shortage will continue until 2022. (Proofreading/LL)