Microchip Technology CEO: Pay close attention to the long-term impact of the Shanghai epidemic

Ganesh Moorthy, CEO of Microchip Technology, said in an interview with US media recently that some of the company's major suppliers are located in Shanghai. This round of epidemic has exacerbated the already tense semiconductor supply chain, and the company's product delivery has encountered challenges.

Moorthy said that although some partner factories have resumed work, the recovery of production capacity under closed-loop management is not optimistic, and the supply shock in the short term may further push up the prices of affected semiconductor products.

Moorthy said he expects Shanghai to gradually start unblocking measures in the next week or two. He also emphasized that Microchip is currently in a "wait-and-see" mode for the company's supply chain layout in China. If it continues to encounter repeated blockades, the company will consider taking more long-term adjustment measures in some way.

According to statistics from the US media, US-listed companies mentioned the Shanghai epidemic situation 291 times in conference calls in April, far higher than 33 times in the previous month. In the first 10 days of May, there were another 271 conference calls containing related content, showing that the business community's attention is heating up.