The global chip shortage disrupting the car industry and threatening the supply of consumer technology products will last for at least another year, the world’s third-largest contract electronics manufacturer has warned.
The forecast from Flex is one of the gloomiest yet as a rapid rebound in vehicle sales combined with a lockdown-driven boom in games consoles, laptops and televisions has left global chipmakers overwhelmed by increased demand.
Lynn Torrel, Flex’s chief procurement and supply chain officer, said that the manufacturers it relies on for semiconductors have pushed back their forecasts for when the shortage will end.
The Singapore-based manufacturer has more than 100 sites in 30 countries and manufactures devices and electronics for companies including Ford, British household appliances designer Dyson, UK online grocer Ocado and US computer and printer maker HP.
The forecast from Flex follows a bruising six months during which shortages have forced car companies to scale back production and furlough staff.
Pandemic-related problems with supply chains have been compounded by the blocking of the Suez Canal in March, the extreme cold weather in Texas and a recent fire at a large chip factory in Japan.
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