Supply Constraints to ‘Ease Only Slightly’ in 2022: S&P

The U.S. tech supply chain is “more constrained” than previously thought, but consumer demand for tech goods “remains robust,” reported S&P Global Ratings Monday. It’s forecasting supply constraints “will ease only slightly” in 2022, “as capacity additions are not likely to make a significant difference” until late in the year. “Semiconductor production is becoming structurally more capital intensive because manufacturing at the leading edge nodes is more complex,” said S&P. “Industry and governments have a greater desire for regional diversity to mitigate geopolitical risk,” and that bodes well for “semiconductor capital equipment makers,” it said.