The global electronics foundry manufacturer Flex has warned that the shortage of chips that disrupt the automotive industry and threaten the supply of consumer technology products will continue for at least one year. In the face of this crisis, Flextronics gives one of the most pessimistic predictions.

The Financial Times reported that Flextronics, headquartered in Singapore, has more than 100 factories in 30 countries around the world. It produces devices and electronic products for many companies including Ford, Dyson, and HP. Buyers.

Lynn Torrel, Chief Purchasing Officer of Flextronics, said the semiconductor manufacturers the company relies on have postponed their predictions of when the shortage will end. She said: "The demand is so strong that it is expected to be in the middle to the end of 2022, depending on the commodity situation. Some people expect (the shortage will continue) until 2023."

Revathi Advaithiyrcru, Chief Executive Officer of Flextronics, said that the devastation caused by the epidemic has prompted its multinational corporate customers to consider restructuring the supply chain more seriously than they had encountered the Sino-US trade war, which may include more regionalization.

She added: “Most companies will not make regionalization decisions because of tariffs. They know that it may only have a short-term impact, but the epidemic that impacts overall costs and higher transportation costs will drive regionalization.”

The chip factory is currently investing in new production capacity, but the construction of the factory is complicated and may take two years.

Torrel said that if the new crown vaccination shifts consumer spending to the service industry, and when the world recovers from the epidemic, people spend less money on consumer electronics, the situation may improve.

However, she warned that some seemingly minor problems-such as Malaysia, where many semiconductor suppliers are located, recently closed the city for two weeks-may have a great impact on the already stressed supply chain.