Wait Is Still Not Over
The global chip supply crunch,
which started after the pandemic in 2020, has intensified over the last few
months and major companies across several industries are struggling to meet the
rising demand for electronic goods and component. With no solution in sight
till at least 2022, all countries around the world are staring at a massive hurdle.
It has already started impacting major economies like the US.
The chips, often
called semiconductors, sometimes called microchips, function as the brains of
our electronics. These chips are lifeblood of modern society, but even before
the pandemic, demand for them exceeded supply. This is more a problem of
uncharacteristically high demand than the that of any systemic supply issues.
Taiwan is the world's leading chip producer; one ongoing concern is Taiwan’s
tense relationship with China. It's become a focal point for the competition
between the US and China.
The global chip
shortage is still causing big problems for car makers. The auto industry faces
a $210 billion loss in revenue from the global semiconductor supply shortfall.
The shortage is expected to delay iPhone production and is already practices of
iPad and Macs. As countless industries have been affected as global demand for
semiconductor chips continue to outstrip supply.
As situation
stands, the global chip crisis is far from over and prices of many electronics
goods and components could increase further 1% to 3%. Establishing new chip
factories may do some miracle on global supply chains but that seems difficult
at the moment as it is extremely expensive and requires a well-trained
workforce. At this point of moment, governments come to the rescue. While
solving the problem is not impossible, it will be an arduous and prolonged
task.
Write a public review