19
January
2011
|
09:07 AM
America/Los_Angeles

Chip Shortage Looms As Factories Strain Production Lines

Andrea Petrou at TechEye reports that major chipmakers are running out of production capacity.

Malcolm Penn, principal analyst at Future Horizons, told TechEye: "There's no capacity so companies are running out of processes."

"Companies have found themselves in this situation because they didn't invest enough money in this last year and the year before that."

Large chipmakers such as Taiwan Semiconductor Manufacturing Company have been forced to cancel workers' holidays and also limit downtime due to maintenance.

TSMC makes chips for hundreds of chip companies and supplies components used in many consumer electronics products and also commercial computing systems. Chip shortages could affect many different products.