This article brought to you with: Finale Inventory.

See how Finale Inventory helps you improve and scale your operations with their all-in-one, multi-channel inventory management solution.

Why There Is a Global Chip Shortage

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?

Reuters, explains:

  • 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.

[If you want to understand how commodity prices affect your business and end-product prices and your margins, check out our online Commodity Markets & Trading Masterclass]

Global Procurement & Supply Chain Professionals Read This…

Free Case Study When You Subscribe

…Carefully curated procurement & supply chain issues that make you look smart, sent to your inbox every week.

PLUS: Get the FREE Procurement Case Study when you subscribe: “How McDonald’s Overcame Global Supply Chain Obstacles”

Procurement Bulletin eNL Subs Email Only Step 1

Similar Posts