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Chipmaker AT&S expects shortages to final one other 12 months

KUALA LUMPUR, Oct 28 (Reuters) – Austria-based chipmaker AT&S (ATSV.VI) sees the worldwide chip scarcity taking at the very least one other 12 months to stabilise and for manufacturing capacities to cowl demand, its chief govt stated on Thursday.

Chief Executive Officer Andreas Gerstenmayer stated the state of affairs was a “very dynamic volatile environment”. In the corporate’s view, it should at the very least take one other 12 months to stabilise and produce up capacities.

“We are now in a very volatile environment that is completely destabilised and this needs to be re-stabilised, and the capacities need to be added to the market,” he stated throughout a briefing.

The producer is establishing a plant in Malaysia that may start development subsequent month, and begin manufacturing in direction of the top of 2024. It plans to speculate 8.5 billion ringgit ($2.05 billion).

Malaysia’s chip meeting trade, accounting for greater than a tenth of a worldwide commerce price over $20 billion, has warned that shortages – exacerbated by years of under-investment in fundamental chip manufacturing, whereas high-end semiconductors have been favoured – will final at the very least two years. learn extra

Gerstenmayer stated the scarcity was not solely brought on by the COVID-19 pandemic as there have been already uncertainties from 2019 that brought about the trade to overlook an funding cycle.

“Then COVID came and with a very sharp downturn, the global supply chain was completely cleaned up. Everyone was very cautious, uncertain, and everyone tried to reduce the capacities they had,” he stated.

($1 = 4.1480 ringgit)

Reporting by Liz Lee; Editing by Emelia Sithole-Matarise