Chip shortage crisis may extend into 2022: Fitch
Rating agency expects supply chain issues to resolve in second half of 2022
By Ovunc Kutlu
ANKARA (AA) - A global chip shortage crisis could extend into 2022 given the cost of adding new semiconductor capacity, Fitch Ratings said Thursday.
The global rating agency said chip shortages have forced manufacturers, including auto and heavy duty truck makers, to scale back production and it has affected first- and second-tier suppliers.
"Certain supply chain challenges would take longer to resolve such as increasing the production of semiconductor chips and additional investment to expand shipping capacity," it said.
In addition, shipping delays and widespread supply shortages of raw materials and components, such as semiconductor chips, are slowing economic recovery from the coronavirus pandemic, it added.
Fitch said it expects supply chain issues to likely resolve at the beginning of the second half of 2022.
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