Cartoon hands offer up wads of cash to another cartoon hand holding a computer chip.
Enlarge / Do not anticipate cheaper chips anytime quickly.

The semiconductor chip scarcity that has so vexed the auto trade seems set to proceed for fairly a while, in accordance with a brand new trade survey. Greater than half of the businesses that have been surveyed by IPC stated they anticipated the scarcity to final till no less than the second half of 2022. And proper now, the chip scarcity is being exacerbated by rising prices and a scarcity of staff.

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

However solely a 3rd of Asian chip makers say they’re discovering it more durable to search out certified staff, in comparison with 67 % of North American corporations and 63 % of European corporations. Which will properly clarify why fewer Asian semiconductor corporations (42 %) are reporting rising order backlogs, in comparison with 65 % of North American and 60 % of European corporations.

Just below half (46 %) stated they have been retraining their present staff to fill the gaps, and almost as many (44 %) stated they have been rising wages to make the roles extra engaging. Different in style measures embrace extra versatile hours and extra coaching alternatives for staff.

Much more 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 no less than. IPC says that chip makers’ revenue margins are shrinking because of this.

That is in all probability already being felt by a few of their clients. In keeping with a report by AlixPartners, the auto trade will lose out on $210 billion in income in 2021, forecasting a shortfall in manufacturing of seven.7 million automobiles worldwide. That is obtained the US authorities’s consideration, too. On Thursday, Commerce Secretary Gina Raimondo is assembly automakers and tech corporations, in addition to semiconductor corporations, to see if the federal authorities might help.

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