X-fab CEO Rudi de Winter said in an interview that despite the downturn and the chip shortages, the demand is such that the existing capacity is sold out for the next three years

Rudi de Winter pointed out that the chip shortage has really changed the industry. There is growing focus on the supply chain and recognition of the strategic importance of semiconductors.

"In the past our business was based on forecasts that were not binding so there was not the security of supply and security of business on our end. Now we see there is a lot of demand and we are signing a lot of long term agreements with a commitment to deliver and a commitment to buy quantities typically for three years so we are expanding quite a lot and those expansions are already sold," says Rudi de Winter.

“And it’s all allocated,” he said. “70% of the CMOS business is on long term agreements with larger customers. Based on those agreements and the outlook we should be sold out for the next three years.”

Rudi de Winter believes that the supply problem is the result of long lead times for semiconductor equipment. He pointed out that the equipment delivery time is still as long as two years, so the expansion of the factory is a long-term plan, and it will take almost three years to increase the production capacity.