SMIC says worries over memory shortage prompt customers to hold back Q1 orders

By Che Pan and Brenda Goh

BEIJING (Reuters) -Semiconductor Manufacturing International Corp , China’s largest contract chipmaker, on Friday said growing worries about a shortage of memory chips are prompting its customers to hold back their orders for other types of semiconductors.

“People don’t dare place too many orders for the first quarter next year,” said Zhao Haijun, SMIC’s co-CEO, during an earnings call. “Because no one knows how many memory (chips) will actually be available – how many phones, cars, or other products it can support.”

Manufacturers of cars and smartphones that use memory will face pricing pressure and supply uncertainty next year, he said, adding that nobody is offering firm supply commitments right now.

The global rush by companies to produce semiconductors fo