Missing chip for chip making machine

Chip production machines could not be born due to lack of components, making the chip crisis worse.

The WSJ site quoted many chip-making equipment manufacturers as saying that they themselves are having problems sourcing materials. The delivery time of some devices for chip production has increased many times, with equipment having to wait 2-3 years before delivery.

Doug Lefever, CEO of Advantest America, says delivery times for devices manufactured by the company have doubled or more. Advantest America specializes in manufacturing chip operation testing equipment - one of the required processes before a chip is shipped. According to Lefever, the testers need about 250,000 parts, and missing a few parts can cause delays to the entire finished product.

ASML, a Dutch company that manufactures high-end chip-making devices, thinks demand for its devices will outstrip supply next year. The company is working with partners to find ways to improve the situation. However, according to ASML CEO Peter Wennink, "this won't happen until 2025". Even when they do ship, it will take more time for chipmakers to put them to use.

A silicon wafer used in chip manufacturing. Photo: WSJ

Chip manufacturing machines are considered one of the most complex and sophisticated devices in the world. In recent years, the high demand for chips has also made these machines expensive. Large chip manufacturing companies such as TSMC, Intel continuously plan to spend hundreds of billions of dollars to expand production capacity.

However, the global chip crisis has created a vicious circle in the market. The shortage of chips led to a shortage of chip-making machines, which in turn exacerbated this thirst.

To solve the problem, some suppliers have begun to give preference to companies that make chip equipment.

"Any device manufacturer that experiences a bottleneck for a particular microchip, that product should be at the top of our priority list," said Ganesh Moorthy, the chipmaker's CEO. Microchip microcontroller, said. He likened this approach to prioritizing treatment for medical device manufacturers during Covid-19.

According to experts, prioritizing chip equipment manufacturers will also help create a "multiplier effect". For example, a device used in chipmaking requires 80 specialized chips, but they can help make another 320,000 chips a year.

Currently, experts believe that the situation of chip shortage will probably happen for at least 1-2 years. According to a report by Susquehanna Financial Group published in April, orders now have a delivery time of about 6 months, the highest level in history. Tom Caulfield, CEO of chip maker GlobalFoundries, said that claims that the chip supply could balance by the end of 2022 are "overwhelming thoughts".