Customers have to wait up to a year before they can get the semiconductors.
(Photo: Bloomberg)
Munich Sold out until next year: Europe’s largest chip group, STMicroelectronics, is struggling with an unprecedented flood of orders. “We are in permanent emergency mode,” CEO Jean-Marc Chery told Handelsblatt. The manager has to allocate the scarce semiconductors to the 200,000 customers.
Because the factories are working at full capacity, customers have to put up with a delivery time of up to twelve months. According to Chery, ST could achieve between 30 and 40 percent more sales if the necessary machines were available. The Italian-French company supplies Tesla with chips for the power supply of electric cars, among others.
There is no quick improvement in sight. The troubled buyers, many of them from the automotive industry, will need a lot of patience for the foreseeable future. In order to process the orders more quickly, Chery wants to invest around 50 percent more this year than in 2021. More than three billion euros are to flow into new buildings and factory expansions. “But this additional capacity has already been fully allocated,” explains the Frenchman.
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