Gartner Research

Develop a Semiconductor Supply Chain Strategy to Prepare for Imminent Silicon Shortages and Price Increases

Published: 19 January 2018

ID: G00350595

Analyst(s): Gaurav Gupta , Samuel Wang


Semiconductor foundries and IDMs are unprepared for the shortage and increased cost of raw silicon wafer supply. Technology strategic planners must innovate agile business models for raw silicon procurement to overcome challenges posed by current market dynamics.

Table Of Contents
  • Impacts


Impacts and Recommendations

  • Price Declines and Consolidation in the Raw Si Wafer Market Lead to Slow Capacity Expansion and a Supply-Demand Mismatch on Wafers
  • Oligopoly Market Conditions for Raw Si Wafers Will Continue to Leave Buyers Exposed to These Dynamics Until 2019 at a Minimum
  • Customers That Are Able to Secure Larger Raw Si Wafer Supplies Can Potentially Gain Market Share at the Expense of Competitors

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.