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The shortage of semiconductors is almost over, says Deloitte

Deloitte, the auditor, consulting house and reader of the runes, has changed its mind and now reckons the shortage of semiconductors that has caused much angst across many industries, including telecoms, is almost over. Six months ago, Deloitte was gloomily reporting that the dearth of availability would last until at least the end of 2023. So what’s changed, apart from the cleaner glasses on the guy reading the entrails of a goat? Well, it seems the semiconductor industry has been ploughing money into everything from research and development through to strengthening and adapting the supply chain and building new fabrication plants that will soon be commissioned and operational. The availability of new chips is also being helped, contrarily, because as the world economy contracts and recession looms in many countries, consumers are tightening their purse strings and buying fewer cars, TVs and other electronic devices and goods. In the US, the pending passing by Congress of the Bipartisan Innovation Act (which contained within it the Chips Act) will permit the paying of substantial subsidies, from a government-provided pot of $52bn, to companies prepared to build fabrication plants in the US and stop making chips overseas or importing them.

Intel is waiting for the act to pass before building its delayed, huge, new $20bn manufacturing site in New Albany, Ohio. When completed, the new factory will be “the largest silicon manufacturing location on the planet”. Mike deWine, the Republican governor of Ohio, says Intel’s prevarication is designed to “gain leverage” with Congress and get the act onto the statute books before the August recess.

CT Bureau

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