Are you dependent on electronics? Do you have a business that has been affected through the recent shortages in semiconductors? The video offers some insight into the causes behind the global chip shortage.
COVID-19 is the cause of the problem with chips. A tightly connected supply chain is crucial in the manufacture and distribution of semiconductors. The supply chain was beginning failing because of travel restrictions or employee illness, it became extremely difficult for chipmakers to meet the demand. Because of the numerous lockdowns, this reality wasn’t immediately apparent. Once the vaccine became more readily available, and businesses started to open again, the there was a huge demand for chips. But the chip supply chain was not immediately able to recover and still has not till today.
The semiconductor expert featured in the video suggests, the American government has not had the ability to determine the solution to this dilemma. The issue remains a problem for the sector of semiconductors. As economies in the most advanced nations continue to roar back to life increasing demand for semiconductors is only going to increase. The fact that the semiconductor industry has not recovered from its outbreak-related disruptions could lead to further shortages in the near time.
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