Are you in an industry that is heavily reliant on semiconductors? Has your business been impacted by the current semiconductor shortages? The video offers some insight into the causes of the global chip shortage.
The chip shortage is a consequence of the COVID-19 outbreak. The manufacture and distribution of semiconductors rests on a tightly integrated supply chain.
Once that chain began to break down owing to employee illness, travel restrictions, and other uncertainties, chip producers were strained to meet demand. This reality was not felt immediately because of all the lockdowns. Once the vaccine became more widely available and businesses began opening again, demand for chips skyrocketed. However, the disrupted chip component supply chain did not immediately recover, and still has not to this day.
As the semiconductor expert in the video suggests, none of America’s policymakers have been able to figure out how to solve this problem. The semiconductor industry continues to struggle with it as well. As economies in the most advanced nations continue to roar back to life, the demand for semiconductors will only increase. The fact that the semiconductor industry has not recovered from its pandemic disruptions will lead to more shortages in the near future.
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