INDUSTRY Q&A


Are semiconductors in short supply?


According to the World Economic Forum: “Semiconductor chip shortages have been aggravated by the pandemic; manufacturers are increasing chip production – but the shortfall won’t be resolved immediately. Despite the current problems, the industry remains highly profitable.” In the first of a two part Q&A series, Michelle Winny, Editor of Electronics Today speaks with semiconductor industry experts, Mark Lippett, CEO of XMOS and Alastair Hanlon, chief commercial officer of PragmatIC Semiconductor to find out more


Here’s what they had to say:


What is the current state of the global semiconductor market? Mark Lippett, XMOS: “The semiconductor market is cyclical. But unlike previous cycles, currently all the inventory in the supply chain has gone. “This means we’re going through a period where virtually every organisation is undersupplied. There’s still some aspiration to over-order, so companies can get back to a more business-as-usual approach, but the realities of allocation make that extremely difficult. “As a result, we’ve seen a stabilisation around an undersupply environment over the last couple of quarters. People are getting real about what they can and can’t build. They’re more sensible in their orders, rather than just trying to get their hands on whatever they can. “Once we reach the point at which supply is more attainable, we’ll see organisations focus on building inventory. When that’s replenished, we can figure out whether we will just drop back into a similar boom-and- bust cycle, or if something more meaningful has changed in how we manage supply chains in the industry.


Mark Lippett


Alastair Hanlon MARCH 2022 | ELECTRONICS TODAY 21


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