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April 21, 2022 09:45 am

Some Chip-Starved Manufacturers Are Scavenging Silicon From Washing Machines

A major industrial conglomerate has resorted to buying washing machines and tearing out the semiconductors inside for use in its own chip modules, according to the CEO of a company central to the chipmaking supply chain. From a report: ASML's Chief Executive Officer Peter Wennink remarked on the situation, without naming the conglomerate, during his company's earnings call Wednesday. The beleaguered firm relayed its struggle to him only the prior week, he said, signalling that chip shortages are going to persist for the foreseeable future, at least for some sectors. "The demand we are currently seeing comes from so many places in the industry," Wennink said, pointing to the wider adoption of Internet of Things (IoT) applications. "It's so widespread. We have significantly underestimated the width of the demand. That, I don't think, is going to go away." Even major chip equipment makers including US-based Lam Research are struggling to get enough components to fulfil orders, potentially making it more difficult for semiconductor fabs to significantly increase their capacity in the near term.

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