The global chip shortage disrupting the car industry and threatening the supply of consumer technology products will last for at least another year, one of the world’s largest electronics contract manufacturers has warned. The forecast from Flex, the world’s third-biggest such manufacturer, is one of the gloomiest yet for a crisis that is forcing car and consumer electronics groups to re-examine their global supply chains. Electronics manufacturers in Asia have also recently warned that the chip shortage was beginning to spread to TVs, smartphones and home appliances, with the situation made worse through stockpiling by Chinese groups hit by sanctions. Ms Torrel said the picture could improve if Covid-19 vaccinations cause consumer spending to shift towards services and people spend less money on consumer electronics as the world recovers from the pandemic. However, she cautioned that seemingly small problems – such as a recent two-week lockdown in Malaysia, where many semiconductor suppliers are based – can have an outsized effect on supply chains already under pressure.

Source: The Irish Times June 07, 2021 05:26 UTC