Taiwan-based IC design houses continue to see their clients make efforts to build up inventories, which may result in pressure on the supply chain, according to industry sources.

Fabless chipmakers continue to see their foundry partners' capacity supply fall short of demand, the sources indicated. Tight supplies of ICs are set to persist throughout this year, with chip prices also being driven up, the sources said.

Macro conditions remain unfavorable to logistics and some other sectors, given the ongoing COVID-19 pandemic, which the sources identify as the major force behind the continued inventory build-ups at downstream device vendors and OEMs.

Production lead times at foundries, particularly 8-inch ones, have been extended to 4-6 months or even longer, the sources noted. Eight-inch foundries have already seen their capacity this year "sold out," the sources said.

TSMC suggested previously that the foundry may see its customers' overall inventory remain above their historical seasonal level for a longer period of time given the need to ensure their supplies amid continued uncertainty.

By DIGITIMES