![]() Įnsuring chip supplies needed for SME will significantly reduce lead times for the fab equipment that semiconductor device makers need to expand capacity without changing their allocation strategies. For some fab equipment, the lead time exceeds two years. Lead times for fab equipment were between three to six months in 2020, extending to 10 months on average in the first quarter of 2021, and even further to 14 months on average in July of 2021. Simply put, without more SME, there can be no additional capacity.Ĭhip shortages have contributed to increased lead times for fab equipment and other complex semiconductor manufacturing tools. ![]() This global effort to grow semiconductor manufacturing capacity hinges on the production and installation of additional semiconductor manufacturing equipment (SME). ![]() Around the world, policymakers are increasing semiconductor manufacturing capacity to strengthen supply chains and meet growing demand for semiconductors through robust incentive packages totaling hundreds of billions of dollars. Global semiconductor supply imbalances have hindered countless industries including essential segments such as automotive and medical as well as workers and consumers.
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