Prolonged parts shortages while pandemic in Europe eases

The Omicron variant's fast spread has World Health Organization experts looking towards the COVID-19 pandemic transition into the endemic stage, where high rates of vaccination and widespread infection could lead to global immunity. However, Pegatron Chairman T.H. Tung pointed out that despite the waning health emergency, shortages of crucial components will continue to persist beyond the pandemic.

Reported by local media, Tung said he expects to see global travel restrictions ease up in the coming six to twelve months, and implored the Taiwanese authorities to consider similar relaxations of guidelines in the future, so as to avoid becoming sidelined.

Much of his observations came from WHO's recent suggestions that the pandemic was heading towards the endemic stage, specifically, data coming from Europe showed some promise, but he was quick to point out that entering the new phase in the pandemic did not necessarily mean that port congestion and container shortages would automatically be resolved.

While part of the situation was caused by a sudden influx of hoarding and surging demand for electronics, Tung reiterated that the chip shortages were also based on the lack of infrastructure investment in the past five to six years. With the unprecedented rise of demand and gridlocked supply chains, these existing infrastructures were quickly overwhelmed.

Impact on the industries in the post-pandemic era will not be evenly distributed across sectors, Tung added, warning that shortages for certain crucial components could last for years.