Disruption due to flea shortage is expected to diminish soon
The worst may soon be over when it comes to disruption related to the global chip shortage, according to Goldman Sachs.
Andrew Tilton, chief economist for Asia at the bank, said the situation could improve in the second half of 2021.
He said there had been “a noticeable tightening” of supply chains and shipping delays in North Asian economies such as Japan, Taiwan and South Korea, which are involved in the semiconductor supply chain.
“It will have an impact on downstream sectors. Auto production is one of them,” he told CNBC. “Asia street signs” Monday.
“Our analysts think we are probably in the worst part of this situation right now. That is, we are currently seeing the greatest downstream disruption (in) industries like automotive and this is happening. will gradually ease over the second half of the year, ”says Tilton.
Still, Goldman’s Tilton said the situation is worth watching, especially if other supply chain disruptions arise.
“There were a lot of fears in Taiwan that droughts or the resurgence of a new Covid epidemic would cause a significant drop in production there. So far, we have not seen this,” he said. declared.
Chip making factories use huge amounts of water on a daily basis, and Taiwan, home to the world’s largest contract chip maker, faces its worst water shortage in 56 years. Sunday, the island lifted some water restrictions after a recent wave of heavy rains, Reuters reported.
Taiwan is also grappling with a Covid outbreak that emerged in May after successfully keeping the virus at bay during most of the pandemic.
“There have been a few isolated disruptions, but so far not enough to cause a major disruption in the semi-supply chain,” Tilton said.
This remains something that needs to be watched closely in the weeks and months to come, he added.