Title: The Global Chip Shortage: The Solution May Have Already Been Manufactured
Headings: The Global Chip Shortage: The Solution May Have Already Been Manufactured
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Content: Most original equipment manufacturers (OEMs) no longer produce 200mm equipment (with some notable exceptions ). Even if new equipment across the process supported 200mm, lead times can be up to 18 months for new equipment from OEMs, meaning, increased expenditure on new equipment today won't yield increased capacity until 2022 at the earliest. OEMs are also looking for legacy machines, some 20 to 25 years old, in order to remanufacture them to support smaller wafers. In short, all of the sudden, vintage equipment is a hot commodity. In theory, equipment shortages and long lead times should impact chip makers around the world equally — but are they? Nikkei Asia recently reported on an unintended consequence of Trump-era trade wars: Chinese chip makers spent 2020 stocking up on older-generation machines not yet restricted by regulations. By way of disclosure, I am CEO of a global marketplace for used semiconductor manufacturing equipment. As such, my company's marketplace data confirms this trend: • Across the board, chipmakers increased spend on used equipment by 54% from 2019 to 2020.