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Technology
Prognosis

Chip Shortage Set to Worsen as Covid Rampages Through Malaysia

  • Infineon and STMicroelectronics had to suspend some production
  • Makers of auto component MLCC have also been affected
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WATCH: Bain’s Anne Hoecker discusses the semiconductor supply shortage.(Source: Bloomberg)

The number of Covid-19 infections is surging in Malaysia, threatening to aggravate shortages of semiconductors and other components that have hammered automakers for months.

The Southeast Asian country hasn’t historically had the kind of importance to technology supply chains that Taiwan, South Korea or Japan do. But in recent years, Malaysia emerged as a major center for chip testing and packaging, with Infineon Technologies AG, NXP Semiconductors NV and STMicroelectronics NV among the key suppliers operating plants there.