ASML Says Chip Shortage Will Last At Least Two Years

ASML is the only producer of critical EUV (extreme ultraviolet) lithography machines which are needed for the most advanced chips. ASML predicts the chip shortages will persist for at least the next two years. The warning is said to stem from ASML’s reliance on its suppliers, including Germany’s Carl Zeiss, which provides essential lenses. Zeiss, in turn, has also been impacted by supply chain issues.

“They need to make significantly more lenses,” ASML chief executive Peter Wennink told Financial Times. But as Wennink explained, that requires them to “build clean rooms; they need to start asking for permits; they need to start organizing the building of a new factory. Once a factory is ready, they need to order the manufacturing equipment; they need to hire people. And then…it takes more than 12 months to make the lens.”

“If you look at it from a broader sense, we have a shortage in semiconductors, period, for at least the next two years. It’s going to take that long to not only bring some of that new capacity online, but it’s also going to take a while to smooth out the demand. Right now, a lot of capacity shortages are in regards to the older generation; the older 2D semiconductor products such as 45nm, 65nm, and even I would say 28nm,” McGregor said.

I, Brian Wang at Nextbigfuture, made a video uploaded 9 days ago that predicted the chip shortages will last into 2024. This was in particluar for the older chips used for cars.

Written By Brian Wang,