Industrial equipment and vehicle manufacturers face significant component shortages as chip suppliers prioritize higher-margin artificial intelligence hardware over basic semiconductors. Industry executives gathered at Munich's Electronica trade fair warned that prolonged underinvestment in mature technologies has exacerbated this manufacturing squeeze. Dutch supplier Nexperia reported being completely oversubscribed amid the intense competition for fabrication bandwidth. Meanwhile, integrated device manufacturers such as STMicroelectronics are relying on internal production facilities to shield their operations from the broader market disruption.
Key points
Surging demand for artificial intelligence data centers is pulling essential foundry capa…: Surging demand for artificial intelligence data centers is pulling essential foundry capacity away from standard automotive components.
Prolonged underinvestment in mature production processes has left supplies of basic diode…: Prolonged underinvestment in mature production processes has left supplies of basic diodes and transistors dangerously vulnerable.
Chipmakers with dedicated internal fabrication plants are better positioned to weather th…: Chipmakers with dedicated internal fabrication plants are better positioned to weather third-party manufacturing bottlenecks than asset-light competitors.
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MUNICH, Nov 10 : Dutch chipmaker Nexperia is "totally oversubscribed" as suppliers divert manufacturing capacity toward fast-growing AI data centres and away from the mature chips used in cars and industrial equipment, interim CEO Stefan Tilger told Reuters at the Electronica trade fair in Munich on Tuesday.
Tilger said some competitors had shifted capacity away from the commodity semiconductors supplied by Nexperia, creating bottlenecks in parts of the automotive supply chain.
"The automotive industry is suffering at the moment quite heavily," he said in an interview.
STMicroelectronics CEO Jean-Marc Chery warned on Monday that foundries and chip-packaging companies were increasingly shifting resources away from products used in automotive and industrial applications.
"We see many bottlenecks," Chery said at a CEO panel ahead of the conference on Monday.
The comments add to evidence that the AI investment boom is creating bottlenecks elsewhere in the semiconductor supply chain, as manufacturers prioritise higher-margin products linked to data centres and artificial intelligence.
Some foundries and assembly and packaging firms that previously served a broad range of customers "are disengaging ... from mainstream technology", he…
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