• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Chip-Starved Firms Are Scavenging Silicon From Washing Machines

Chip-Starved Firms Are Scavenging Silicon From Washing Machines

Taiwan Semiconductor Manufacturing
Silicon wafers made by Taiwan Semiconductor Manufacturing Co. (TSMC). Photo: Bloomberg.
April 22, 2022
Bloomberg

A major industrial conglomerate has resorted to buying washing machines and tearing out the semiconductors inside for use in its own chip modules, according to the CEO of a company central to the chipmaking supply chain.

ASML Holding NV Chief Executive Officer Peter Wennink remarked on the situation, without naming the conglomerate, during his company’s earnings call Wednesday. The beleaguered firm relayed its struggle to him only the prior week, he said, signaling that chip shortages are going to persist for the foreseeable future, at least for some sectors.

“The demand we are currently seeing comes from so many places in the industry,” Wennink said, pointing to the wider adoption of Internet of Things applications. “It’s so widespread. We have significantly underestimated the width of the demand. That, I don’t think, is going to go away.”

Even major chip equipment makers including U.S.-based Lam Research Corp. are struggling to get enough components to fulfill orders, potentially making it more difficult for semiconductor fabs to significantly increase their capacity in the near term. 

“On the demand side, the entire environment remains very strong, while continued supply-related delays could potentially limit how much wafer fabrication equipment investment can be executed in 2022,” Lam CEO Tim Archer said on an earnings call on Wednesday.

Automakers have yet to overcome a semiconductor crunch that has challenged their operations for over a year. Tesla Inc. said this week that production remains hampered by shortages and elevated prices for key components, while Volkswagen AG has cautioned to expect continued negative effects from chip scarcity. Earlier this week, Toyota Motor Corp. trimmed its output target by about 100,000 units for this year on insufficient semiconductor supply.

Some signs of weakening consumer electronics demand have yet to translate into relief for manufacturers of other silicon-hungry products and devices. 

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, reiterated last week that its capacity remains tight throughout 2022. A major Chinese chipmaker has sold out its capacity through 2023, according to ASML’s Wennink.

TSMC CEO C.C. Wei highlighted the challenges its suppliers are facing during an earnings call last Thursday, saying a constraint in labor and chips has led to a longer delivery time for tools.

The wait times for semiconductor deliveries rose slightly in March, reaching a new high of 26.6 weeks, after lockdowns in China and an earthquake in Japan further hampered supply, according to research by Susquehanna Financial Group.

RELATED CONTENT

RELATED VIDEOS

Sourcing/Procurement/SRM Global Supply Chain Management Supply Chains in Crisis Automotive High-Tech/Electronics
  • Related Articles

    Amazon’s Clever Machines Are Moving From the Warehouse to Headquarters

    To Compete With Silicon Valley, Aerospace Firms Start Recruitment in Pre-K

Bloomberg

Amazon Aims to Sublet, End Warehouse Leases as Online Sales Cool

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Medical drone

    Amazon May Be Proof That Delivery Drones Aren’t Practical

    Last Mile Delivery
  • ESG Guide

    Confronting the ESG Imperative in Supply Chains

  • SEC building seal

    Get Ready for the Next Phase of ESG: Mandatory Corporate Due Diligence

    Regulation & Compliance
  • Heat Wave Triggers Blackouts

    Vast Swath of U.S. at Risk of Summer Blackouts, Regulator Warns

    Supply Chain Security & Risk Mgmt
  • Worker using tablet

    Podcast | Stitching Together the Physical and Digital Supply Chain

    Technology

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing