Brokers Blamed for Semiconductor Shortage
The U.S. Department of Commerce released a report on global semiconductor shortage on Jan. 25 based on data previously submitted by 150 semiconductor companies.
“The shortage caused by COVID-19 and the resultant supply-demand imbalance is likely to continue for a while, and we are planning to conduct additional investigations as to abnormal prices,” it said, adding, “South Korean companies in the industry, including Samsung Electronics and SK Hynix, have nothing to do with the shortage, that is, they increased their capacities despite COVID-19, and they caused no production setbacks.”
According to the U.S. government, the imbalance is mainly because of brokers as well as an increase in demand. “The brokers mentioned by the U.S. government are mainly Chinese and Taiwanese,” said an industry insider, adding, “According to it, they exacerbated both automotive and power chip market conditions while causing price distortions.”
U.S.-South Korea cooperation in the industry is expected to expand after the release of the report. “The United States’ trust in South Korean semiconductor manufacturers has been reconfirmed and they are expected to have a bigger influence during the upcoming supply chain discussions,” the source said.