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What's causing the global semiconductor shortage?

March 31, 2021 00:00 AM UTC
- Updated October 08, 2021 15:31 PM UTC

Lack of supply is delaying the production of cars and electronics.

Transcript
Mm Mm hmm. A surprise that the pandemic has some role to play in the current chip prices as people pivoted to working at home last year, demand for personal electronic search, prompting gadget makers to increase order for chip set. At the same time, demand for cars declined, prompting automakers to cut orders. Now, with the pandemic easing, automakers are looking to make a comeback. But chip makers a busy, satisfying demand for booming electronics sales. With supply now suddenly outstripping demand chip shortage emerged. Consolidation of the chip industry exacerbated the crisis. To many of them was leading chip designers like Qualcomm. New video, even Apple and Intel actually outsource some or all of our production to contract manufacturers. The world's leading contract manufacturer, TSMC manufacturers about half of the world's made to order chip supply. You have a 30% is made up by roughly three over company. With so few leaders, the industry doesn't have excess capacity to absorb any extra demand for the U. S. And Europe. It also doesn't help that three of the four leading chip makers are in Asia. That regional dominance creates a bottleneck in global supply lines. Mm yeah, mhm for the U. S. A likely solution will be the onshore, more chip production that will increase both domestic and global capacity for manufacturing. But this isn't a short term solution. America has already invested billions in invigorating the domestic industry, but building manufacturing plants takes years for now, for any way out of this chip crisis is just to wait mhm.