Global chip shortage to last well into 2022 as industry struggles with multiple obstacles

The world is currently suffering from a major shortage of semiconductors at the moment. This has impacted various industries across the globe with the industry struggling due to various complex obstacles, which would likely cause the shortage to further last into 2022.


According to an SCMP report, the chip shortage is worsened by the multiple factors that are at play right now. The report further added that this would likely lead the shortage to last through this year and well into 2022 as well. For those unaware, the shortage first affected the automotive industry since the chips controlled various functions like brakes, doors, and windscreen wipers, and more. And now, the issue is also affecting consumer electronic products like smartphones, PC market, and even home appliances like washing machines and microwaves as well.

Furthermore, two of the major hurdles the situation faces at the moment includes the coronavirus pandemic as well as the ongoing US-China trade disputes that has affected supply chains. While the price rise of chips is a result of the shortage that is related mostly to the semiconductor sector for now, analysts believe that some low margin consumer products might soon also see a hike in price in the near future due to persisting capacity crunch.

Chip

Notably, many analysts also believe that the the first step on the path to a chip shortage was actually due to the escalation of the United States’ growing friction with China. This started with the previous President Donald Trump, with the current President Joe Biden also attempting to bring semiconductor production within the US. So, it would seem like that it will take a while before the situation becomes normal again.

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Via: gizmochina.com

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