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Chip Crunch Is Stifling Production of New Chips, Gearmaker Warns

  • Chipmakers, suppliers need more equipment to expand capacity
  • Kulicke and Soffa supplies chip packaging equipment to ASE
Semiconductor Production at Globalfoundries Europe Plant
Photographer: Liesa Johannssen-Koppitz/Bloomberg

The global shortage in semiconductors is spreading to companies that provide gear used to manufacture the silicon, with one chip packaging equipment supplier warning of delays in shipments.

Average delivery times of Kulicke and Soffa Industries Inc.’s packaging equipment, which require microcontrollers, have doubled to six months, said Executive Vice President Chan Pin Chong. The company supplies equipment to customers like ASE Technology Holding Co., the world’s largest chip packaging and testing services provider.