According to Korean media reports, lead times for essential components used in semiconductor manufacturing equipment have more than doubled. A senior executive at a Korean deposition equipment maker, identified as Company A, said, “We are struggling to secure components. We used to receive parts for deposition equipment within four months of placing an order, but that has recently stretched to as long as 10 months.” Company B, which manufactures laser processing equipment for semiconductors, said it now takes up to 40 months to receive critical components from Japan. “We are willing to pay a premium for faster delivery, but our component suppliers have told us they cannot shorten lead times because their production capacity is limited,” a Company B representative said. “Without alternative suppliers, we face immediate difficulties manufacturing equipment.” Packaging equipment maker Company C has established a domestic component supply chain, but it is also experiencing delivery delays. “We are in a better position than companies sourcing from overseas, but securing components still takes about 50% longer than usual,” a Company C executive said. That means components used to manufacture packaging equipment that typically arrived within four months now take six months or longer. The industry’s reluctance to use Chinese components is also contributing to the problem amid U.S.-China trade tensions. There are concerns that including Chinese components in the supply chain for advanced semiconductor manufacturing could lead to restrictions on doing business with U.S. chipmakers. With Chinese suppliers having rapidly expanded their presence in the semiconductor equipment components market through competitive pricing, excluding them makes it difficult to find alternatives.

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