Chip Shortage Could Last Longer Than Expected

Recent weather disruption in Texas and damage from a recent factory fire for Japanese auto-chip maker Renesas Electronics Corp. has added a further twist to the saga of scarce chip supply, meaning tightness could take longer to resolve, UBS says. “Our base case remains that through 2Q and into 2H we should see some improvement, particularly given there does appear to have been some prioritization of the autos industry within foundry wafer allocation,” the Swiss bank says. German chip maker Infineon Technologies was forced to shut down a manufacturing facility in Texas in February after a severe winter storm and a regional power outage, although production resumed last month.