Singapore-based electronics manufacturer Flex (NASDAQ: FLEX) anticipates that the current semiconductor shortage will extend at least halfway into next year and potentially into 2023, according to a report published by The Financial Times on Monday. Chip manufacturers are already making big investments to open new factories, but the plants will take years to build, and it looks like supplies of semiconductors will continue to be constrained in the near term.
Flex is the world's third-largest contract electronics manufacturer and provides components for companies including Ford (NYSE: F) and HP . Its comments provide sobering insight into the supply chain issue. The company's executives believe the situation could improve if consumer spending shifts from electronics to services, but that might be unlikely.
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For further details see:The Global Semiconductor Shortage Could Extend Into 2023