The global chip shortage doesn’t mean all semiconductor prices will shoot up equally, says Natixis chief economist

<div></div> <p><span class="HighlightShare-hidden" style="top:0;left:0"></span></p> <div class="group"> <p>The global chip shortage is causing problems for multiple industries and <a href="https://www.cnbc.com/2021/05/12/the-global-chip-shortage-could-last-until-2023-.html">shows no signs of abating</a>, but don’t expect prices for all types of chips to shoot up, says the Asia-Pacific chief economist of research firm Natixis.</p> <p><a href="https://www.cnbc.com/2021/05/07/chip-shortage-is-starting-to-have-major-real-world-consequences.html">Car makers have been hit hardest by the shortage, but the crisis affects everything</a> from gaming consoles to televisions.</p> <div style="height:100%" class="lazyload-placeholder"></div> <p>But not all industries or products may suffer the same way. In fact, there might even be an oversupply of certain chips, according to Alicia Garcia-Herrero of Natixis.</p> <p>“Those chips that for which I am expecting overcapacity, are the kind of lower-end chips,” she told CNBC on Thursday. “This is because China is entering that part of the supply chain very quickly with huge investment.”</p> </div> <div style="height:100%" class="lazyload-placeholder"></div> <div class="group"> <p>In other words, Garcia-Herrero said on “<a href="https://www.cnbc.com/asia-squawk-box/">Squawk Box Asia</a>,” there will be a segmentation of prices.</p> <p>“The lower end chips will have plummeting prices, very likely … But for the best ones — those that really are relevant for 5G and electric vehicles — we want. So these will have some inflationary consequences,” she said.</p> <p>The ongoing shortage was partly driven by companies stockpiling as the pandemic swept across the world and supply fears grew. </p> <div style="height:100%" class="lazyload-placeholder"></div> <p>But <a href="https://www.cnbc.com/2021/02/10/whats-causing-the-chip-shortage-affecting-ps5-cars-and-more.html">geopolitics is playing a part too</a>.</p> <p>Amid the tech race between both giants, the U.S. last year placed restrictions on China’s biggest chipmaker <a href="https://www.cnbc.com/quotes/981-HK" target="_blank" rel="noopener">Semiconductor Manufacturing International Corporation</a>, barring it from getting advanced manufacturing gear, and making it harder to sell its finished products to companies with American ties. </p> <p>As a result, some companies decided to stockpile essential chips ahead of those restrictions.</p> <p>Garcia-Herrero said that those geopolitical risks will not go away. Both the U.S. government and the tech sector have pushed to <a href="https://www.cnbc.com/2021/04/12/intel-ceo-hopes-us-can-reclaim-one-third-of-chip-manufacturing.html">boost the country’s semiconductor manufacturing capabilities</a> as a hedge against this risk. While some U.S. companies design their own chips, currently the vast <a href="https://www.cnbc.com/2021/03/16/2-charts-show-how-much-the-world-depends-on-taiwan-for-semiconductors.html">majority of the world’s chips are manufactured in Taiwan, South Korea and China</a>. </p> <p>“This is the problem that adds to the complications of the inflation — that the most valuable part of the supply chain in the U.S. is going to face a lot of geopolitical risks … and this is not going to change,” she said.</p> </div> <div id="ArticleBody-MobileAdhesion" class="MobileAdhesion-container" data-module="mps-slot"></div> <p>The post <a rel="nofollow" href="https://patabook.com/technology/2021/06/04/the-global-chip-shortage-doesnt-mean-all-semiconductor-prices-will-shoot-up-equally-says-natixis-chief-economist/">The global chip shortage doesn’t mean all semiconductor prices will shoot up equally, says Natixis chief economist</a> appeared first on <a rel="nofollow" href="https://patabook.com/technology">Patabook Technology</a>.</p>

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