Delay in Chip Production Equipment Delivery Puts Samsung and TSMC on Alert.

$Taiwan Semiconductor(TSM.US)$ $SAMSUNG EL 144(SSNGY.US)$ $ASML Holding(ASML.US)$ Delivery times have increased sharply as demand for high-performance semiconductor production equipment is increasing due to surging demand for high-end chips amid a prolonged shortage of parts for semiconductor equipment production. SEMI predicted that the global semiconductor equipment investment will reach US$103 billion in 2022.

In January, the figure increased by US$5 billion from a previous estimate. Lead time from ordering a product to delivery expanded from three to four months in 2019 to 10 to 12 months in 2021.

The biggest issue in the semiconductor industry is to secure extreme ultraviolet (EUV) lithography equipment essential to semiconductor microfabrication. EUV lithography equipment is exclusively produced by ASML. Chipmakers around the world are focusing their efforts on securing EUV lithography equipment. ASML’s annual production stood at only 42 pieces of equipment as of 2021.