The Limited Times

The specter of the chip shortage looms

8/9/2021, 4:47:42 PM


Stocks of starving raw materials, very high demand: chipmakers are in a complex situation that threatens all electronic production.

Never before has the world consumed so many semiconductors.

This year global production is expected to reach $ 527 billion, up 19.7% year on year, according to World Semiconductor Trade Statistics (WSTS).

This rush for the chips has resulted in dramatic stockouts for some sectors.

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So far electronics manufacturers have held up relatively well.

Last year, they had maintained their orders and anticipated increases.

Their historical relationships and their market shares with their suppliers have also helped them to secure their supplies.

But, little by little, they are overtaken by the reality of an industry under pressure.

Very high demand

Manufacturers of electronic components may have announced the opening of new production capacities, it will take several months - even one or two years - for them to be operational.

The CEO of Intel has warned, there will probably not be a return to normal before 2023. However, all the players

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