Supply chain bottleneck hurting U.S. businesses

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Reuters

‘They’ll have to pay’: Malaysia chip crunch triggers new era in supply deals

Manufacturers are rushing to replenish chip stocks depleted during coronavirus pandemic factory curbs – not least automakers who earlier cancelled orders expecting poor demand. At factories in Malaysia, operators like chip packaging firm Unisem say that drive is leading buyers that sell chips on to auto and electronics manufacturers to become willing to sign up for big price hikes, some even asking for as many assembled chips as plants can produce – whatever the cost. But Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, warns that shortages – exacerbated by years of under-investment in basic chip production, while high-end semiconductors were favoured – will last at least two years.



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