Microchip CEO Ganesh Moorthy said recently that some of the company’s main suppliers are located in Shanghai, China. The epidemic prevention and control in Shanghai in the past two months has exacerbated the tension in the Semiconductor supply chain, and the company’s chip delivery has encountered challenges.
Moorthy said that although some suppliers have resumed operations, the recovery of production capacity under closed-loop management is not optimistic, and the supply shock in the short term may further push up the prices of affected semiconductor products.
Moorthy said that he expects Shanghai to gradually start unblocking in the next week or two. He also emphasized that Microchip is currently watching the layout of China’s supply chain for the company and may consider taking longer-term adjustment measures in some way.