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The shortage of chips has been slowing economic growth worldwide

The shortage of chips has been slowing economic growth worldwide for months. However, the market is only slowly adapting to the high demand.

The shortage of chips has been slowing economic growth worldwide
Yazar: Tom Roberts

Yayınlanma: 19 Eylül 2021 03:42

Güncellenme: 23 Kasım 2024 03:26

The shortage of chips has been slowing economic growth worldwide

The shortage of chips has been slowing economic growth worldwide for months. There is hardly an industry in which the components are not needed. And conveyor belts keep standing still because parts are missing. Companies are struggling to be able to buy the coveted semiconductors in sufficient quantities. Those who do not have long-term contracts have to pay high prices in some cases. The market usually reacts to a well-paid shortage by expanding production. The example of Infineon's newest chip factory shows that this is not so easy. The Dax group from Neubiberg near Munich has now officially opened its newest plant in Villach, Austria. Construction went well and was even a few months faster than originally planned. It is a stroke of luck for Infineon that the factory is starting to produce in the midst of a lack of chips. Because when the decision to build it was made at the beginning of 2018, the current development was anything but foreseeable. Construction work began in May 2019, production started at the beginning of August this year - and the first chips are coming out of production in these days. There are a good three and a half years in between. Chip factories are so-called fast-track projects, as Andreas Wittmann, the project manager for construction in Villach, emphasizes. Due to the very high capital investment, the construction must be implemented particularly quickly. The factory in Villach costs 1.6 billion euros. But it will also take a few years before the factory reaches its full capacity. Wittmann explains that factories are ramped up gradually in the semiconductor industry.
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