CICC:Chip capacity shortages and high industry prosperity are likely to continue

      China International Capital Corporation (CICC) said in an article on its WeChat official account that since the third quarter of 2020, the global semiconductor industry has experienced a serious chip shortage, including automotive, mobile phone, security and other industries.

      CICC believes that the chip shortage is caused by a number of factors:

      1) Short-term factors include the decline of capacity utilization rate of global semiconductor industry chain caused by COVID-19, the short-term inability of some manufacturers to produce due to natural disasters such as snow disaster/earthquake/fire, telecommuting/online education, and the rapid increase in the demand for computer/server related chips in 2020, and the recovery schedule of capacity lags behind the demand;

      2) Long-term factors include the increasing penetration rate of automobile electrification/networking/intelligence, the increasing penetration rate of 5G mobile phones, and the development of the Internet of Things. The global chip demand side will still grow steadily, but manufacturers on the capacity side are cautious in expanding production, and there is a certain capacity gap in the links of wafer manufacturing/packaging and testing/silicon wafer production.

      3) Cycle factors have semiconductor industry is in a new round of business cycle up stage.

      From this we judge the chip capacity shortage and high industry prosperity may continue.

      In addition, the shortage of chips may have an impact on the operations of chip design companies, but head chip design companies are more likely to gain chips in a crisis because they have stronger partnerships with wafer/test vendors, CICC said, adding that the shortage could increase market share.