Gartner Research

Constrained Wafer Supply Creates Business Challenges for Customers of Semiconductor Vendors

Published: 26 January 2018

ID: G00349630

Analyst(s): Alan Priestley


Underinvestment and falling wafer prices have created a shortfall in wafer availability to meet growing demand for new semiconductor devices. Technology product management leaders at electronic equipment vendors must plan for extended lead times and shortage of supply for key semiconductor devices.

Table Of Contents
  • Impacts


Impacts and Recommendations

  • Manufacturers Are Facing Semiconductor Device Supply Constraints and Extended Lead Times Due to a Shortage of Silicon Wafers
    • Older-Generation Processes Using 200 mm Wafers Exacerbate the Wafer Shortage
  • Vendors Buying Low Volumes via Distribution Channels Face Greater Risk Than Vendors With Long-Term Direct Supplier Relationships
  • Challenges of Second Sourcing ASSPs Make Use of Standard High-Volume Semiconductor Devices More Attractive for Dynamic Markets

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.