Category: General|Nov 29, 2021 | Author: Admin

The chip crisis: It gets worse before it gets better

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Investments are being made in new production facilities, but they will not be in place in time to prevent it from getting worse in 2022.

It will take time before new production facilities are taken into use. In the meantime, the bottlenecks will increase
Among the many puzzle pieces that have led to the ongoing chip, the crisis is a shortage of raw materials. Important products in this regard are substrates: they are the basis of any circuit board but are also used as carriers in the packaging of chips.


To address the shortage, Asian substrate suppliers are investing in increased capacity. This will keep the associated equipment manufacturers' order books full until the second half of 2022, Digitimes reports. It will take some time before the new production facilities are taken into use and in the meantime, the bottlenecks will probably increase, if we are to believe the industry observers.


Symptoms of notebook deficiency
One of the products that is expected to increase in shortage in 2022 is substrates with ABF (Ajinomoto Build-up Film). This is used as an insulating layer in PC processors, especially it is used in CPUs for laptops. Without it, no chip.


It is expected that the supply of laptops will not keep pace with demand in 2022. This will probably primarily affect the new generation of devices that are traditionally presented at the technology fair CES in early January together with new generations of CPUs from AMD (Ryzen 6000 ) and Intel (12th Core-i generation).


Niche products are affected
2021 has already given a taste of this. Niche notebooks in particular have had and still have difficulty. The Lenovo ThinkBook Plus G2 with E-Ink second screen, which was unveiled at CES 2021, did not hit stores until late autumn 2021 - in exactly one (at least sensibly chosen) configuration variant.


The first batch of the advanced notebook HP Elite Dragonfly Max, also unveiled at CES in early 2021, recently hit the market. Despite very high prices, it is now sold out and more retailers do not expect refills until February 2022.

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