Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

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Dec 19 9:30 AM EST

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To: michael97123 who wrote (53102)	9/25/2001 11:34:59 AM
From: Proud_Infidel	Read Replies (2) of 70976

Bad shortages coming if work doesn't begin on delayed fabs EL SEGUNDO, Calif.--Talk about contrarians. Here's a market researcher worrying about chip shortages, of all things. There will be "serious shortages" of logic and other chips if makers don't jumpstart their delayed fab projects by the middle of next year, according to a new forecast by iSuppli. These shortages "could develop rapidly and derail the recovery of the entire electronics industry," warns iSuppli analyst Len Jelinek. "As order rates pick up over the next few quarters, it will be important for manufacturers not to color capacity expansion decisions with the pessimism of the recent past." "While it seems a bit fanciful to speak of allocation and component shortages in light of [current] conditions, our detailed analysis of the semiconductor supply chain has identified several choke points that could cause significant component shortages over the next several years," he says. "Specifically, consolidations, facility shutdowns, and delaying of announced expansion plans in light of current market conditions is creating the potential for serious supply shortages to develop in the not too distant future," Jelinek says. "To avoid this, manufacturers must restart these deferred programs by next summer to have the capacity on line to meet customer demand." Talk about early warning!

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