The global chip shortage is largely seen as a pandemic-induced shortage of semiconductors.
Reports show that while there was no shortage of semiconductors in 2018 and 2019, a shortage of semiconductors began in the automotive industry during the COVID-19 pandemic and has since spread to various sectors using a semiconductor chip.
As demand for cars declined in the first half of 2022, manufacturers shifted their focus to other areas such as computer equipment and mobile services.
However, the demands in various sectors, including communication platforms with the development of 5G networks and the development of cloud-based services, have increased. The problem has become more apparent with the increasing demand for automotive products.
Since demand exceeded supply, the semiconductor foundries available were no longer sufficient.
Complicating the problem is the need to build more foundries to address the problems, which will take billions of dollars and years. To combat the problem, some companies such as Intel, Samsung, Micron and others have vowed to build semiconductor plants to combat the situation.
Commenting on the impact of the shortage on Christmas shopping, Gadjo Sevilla said: “The inability to meet consumer demand during the biggest shopping season will take a toll on companies’ bottom lines. And with no end in sight for the chip shortage, it’s impossible to say how long it will take for companies to recover losses.”
For more information, read the original story in Tech Republic.