Chip shortage to ease in second half, Fitch says

ISTANBUL

US-based credit rating agency Fitch said the global semiconductor shortage could begin to ease as of the second half of this year.

The agency recalled on late Monday that the chip sector has been increasing capacity aggressively since 2021 despite the uncertainty.

Chip foundries are planning large multi-year investments for production, it added.

"Some expansion is occurring outside of Asia, with manufacturers partnering with the US government, which supports building domestic capacity to reduce supply chain risk, as the majority of chips are currently produced in Taiwan and South Korea," Fitch noted.

As the pandemic measures hit several production activities, including semiconductor facilities, high demand in recovering process of the pandemic caused a chip crisis globally.

Related to the crisis, many sectors have been facing production disruptions, especially automotive companies.