Taiwan-based supply chains have much experience in coping with double booking, and have measures in place to handle such situations, according to Pegatron chairman TH Tung.

Tung was speaking at an event marking the 40th anniversary of Hsinchu Science Park, in response to concerns about over-booking at foundry houses.

When components are in shortage, downstream manufacturers usually will place orders with volumes exceeding actual demand in bids to secure sufficient supply, Tung said.

The coronavirus pandemic is making it difficult to provide a 2021 forecast on the global ICT market, but Taiwan-based ICT makers are short of production capacity to meet strong demand for the time being, and they need not worry about demand over the next 3-6 months, Tung indicated, adding that many of them have extended lead time for orders.

Pegatron chairman TH Tung
Photo: Michael Lee, Digitimes, December 2020