Global market is hit by a storm of chip shortage

4194
06 Sep 2021
8 min read

News Synopsis

Everyone is aware that semiconductors are the power source of the modern world. They are not only the key component of nearly every device we use, they also power the machines that make them. Not only in home appliances, but they have been used in software used in the military also. Chips are semiconductors with built-in transistors. It took many inventions like transistors, integrated chips, microprocessors to reach a super small advanced chip to power our smartphones, cars, radios, etc. Along with the production of chips, shipping of these chips was also delayed as COVID-19 affected the number of flights.

Moreover, importance was being given to COVID-19 related articles to be shipped overseas. Considering all the factors, global air cargo capacity is declined by 20% in 2020. The first to be hit by the storm were automobile manufacturers back in spring 2020. As was forecasted earlier, the demands of many companies are already decreased due to pandemics, which reduced their demand for chips. It’s certain that semiconductor manufacturing companies as well as companies that need them should take action to come out of this global crisis. Precise mapping of multi-tier chains will highlight the sources of issues and will make it easy to resolve them in the most efficient way. As more companies are adapting to the modern world, new strategies need to be implemented to understand market scenarios and chips for critical products.      

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