Global Pandemic? Don’t tell semiconductor chip makers and the product manufacturers that need them.
Supply chains aren’t just dealing with shipping containers getting stuck in the Suez Canal, there’s a global semiconductor chip shortage but why?
- Sanctions against Chinese companies
- Manufacturers are stockpiling chips for fear of on-going shortages (thus exascerbating the problem)
- Huge consumer demand for products that require semiconductor chips
- Auto makers have to slash their production targets due to the chip shortages (as modern automobiles are heavily reliant on chips for their on-board computersand electronics)
- Chip manufacturers have been unable to keep up with demand
The end result is driving higher prices for everything from autos, smartphones, computers and appliances.
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