Insight-War disrupts the easing of chips shortage

Tight situation: Customers viewing Proton cars at a showroom in Shah Alam. The national carmaker is working closely with its vendors and sourcing semiconductors from multiple sources to secure a steady stream of supply.

THE shortage of semiconductor chips, which is in the process of easing by possibly middle of this year, may be further disrupted by the prolonged Russia-Ukraine conflict.

Prolonged supply disruptions, higher prices of raw materials and shipping rates as well as labour shortage will potentially impact global chip capacity and lead to a spike in chip prices.