Chip Shortage Hits Solar Sector With Enphase Citing Constraints
(Bloomberg) -- A global shortage of semiconductors critical to auto and electronics makers has also ensnared the solar sector.
Enphase Energy Inc. on Tuesday said it “experienced constraints in the global semiconductor supply chain” in the fourth quarter, according to a statement. Chief Executive Officer Badri Kothandaraman called the supply issues “manageable” during an earnings call, saying he expects the problem to ease over the next two months.
The company has seen a strong increase in demand recently for its microinverter systems, which convert solar power from direct to alternating current. Revenue for the fourth-quarter exceeded the top analyst estimate.
Manufacturers around the globe are scrambling to secure supplies of semiconductors that are essential to everything from smartphones to cars. Qualcomm Inc., the world’s largest mobile chipmaker, this week flagged shortages “across the board.”
Enphase faced a shortage in 2019 when a dearth of electric transistors forced the company to compete with electric-vehicle makers for supplies.
©2021 Bloomberg L.P.