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.