Semiconductor Shortage to Ease for Wireless Communications

Strategy Analytics predicts an easing of the semiconductor shortage for wireless telecommunications companies. The Strategy Analytics RF & Wireless Components report maintains that Wireless telecommunications have escaped the worst effects of the semiconductor shortage and that semiconductors for cellular infrastructure equipment will continue to dodge significant shortages going forward. In addition, the availability of chips for Wi-Fi access points and cellular phones will continue to improve through next year.

“Tight supplies of semiconductors will gradually ease through the remainder of 2022 into 2023 as new foundry capacity comes online. For example, China increased its production of semiconductors by more than 17 percent in 2021, and production expansion in China will accelerate this year helping to ease the global shortage. Semiconductor investments in the U.S., EU, S. Korea, India, and other countries have also started to bear fruit, with the most significant capacity expansions due to start in 2023,“ said Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service and research author.

“Despite temporary rolling COVID-19 lockdowns in some countries, better control of the pandemic will reduce the rates of new pandemic cases through the remainder of 2022. This will help in the expansion of staffing at semiconductor and electronics production plants and stabilize consumer demand for wireless products,“ added Stephen Entwistle, Vice President of Strategic Technologies at Strategy Analytics.