TAIPEI (Taiwan News) — Taiwanese chipmaker Winbond Electronics sees the current war in Ukraine having a long-term impact on the industry.

In an interview with Nikkei Asia Review, the Taichung-based company’s CEO Arthur Chiao (焦佑鈞) said the pandemic-fueled spike in demand for semiconductors might soon falter if inflation and geopolitical conflict continue to destabilize the world economy.

Even if the war stops, pressures on consumers in Europe, like rising energy prices, are set to continue, said Chiao. This will likely lead to a downturn in demand for the consumer electronic products that semiconductors are made for.

“I don't expect any of these (pressures) to revert immediately even if the war ends soon," Chiao told Nikkei. "This is likely going to have a long-term impact."

Chiao said the optimal way for C-suite executives to help their firms navigate stormy economic waters is to focus on long-term growth in areas that are relatively immune to short-term market shocks. He also advised being moderate, neither too aggressive nor conservative, in pursuing a strategy.

“If you stay in the middle, you will have room to adjust quickly according to the situations,” he said.

Winbond is a leading total memory solution provider. It has the largest market share for NOR flash memory chips and is a key player in customized DRAM, another variety of memory chip.