According to Goldman Sachs, the worst of the turmoil caused by a global chip shortage could soon be over.
Andrew Tilton, chief Asian economist at the bank, said the situation could improve in late 2021.
He said North Asian countries such as Japan, Taiwan and South Korea, which are involved in the semiconductor supply chain, are experiencing “significant tightening” and shipping delays in their supply chains.
“It will affect the downstream sector. Car production is one of them,” he told CNBC’s “Street Signs Asia” on Monday.
“Our analysts think it’s probably the worst time now, which means that we’re currently seeing the biggest turmoil downstream (in the industry), such as automobiles, which will gradually ease later this year. Will be done, “said Tilton.
Taiwan’s concerns
Still, Goldman’s Tilton said it’s worth monitoring the situation, especially if there is another disruption in the supply chain.
“In Taiwan, there were many concerns that a drought or a new coronavirus epidemic could lead to a significant shortage of production. So far, no such thing has been seen.” He said.
There have been some isolated turmoil, but so far it’s not enough to cause major turmoil in the semi-supply chain.
Andrew Tilton
Goldman Sachs Chief Asia Economist
Chip manufacturing plants use large amounts of water every day, and Taiwan, home to the world’s largest chip maker, faces the worst water scarcity in the last 56 years. The island lifted some water restrictions on Sunday after a recent heavy rain, according to Reuters.
Taiwan is also addressing the May outbreak of Covid after successfully repelling the virus in most of the pandemics.
“There was some isolated turmoil, but so far it wasn’t enough to cause major turmoil in the semi-supply chain,” Tilton said.
He added that it remains something that needs to be closely monitored for the coming weeks and months.
June 08, 2021 at 11:53AM
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The confusion caused by lack of chips should soon subside - Texasnewstoday.com
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