Title: The Global Chip Shortage: The Solution May Have Already Been Manufactured
Headings: The Global Chip Shortage: The Solution May Have Already Been Manufactured
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Apr 28, 2021,07:50am EDT | 7,583 views
The Global Chip Shortage: The Solution May Have Already Been Manufactured
Steven Zhou
Forbes Councils Member
Forbes Technology Council
COUNCIL POST
Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. | Membership (fee-based)
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Steven Zhou, Co-Founder and CEO, Moov
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Some have pointed to the Covid-19 pandemic as a driving force behind current chip shortages. Certainly, increased consumer device sales driven by work-from-home trends, supply chain disruptions caused by the pandemic and recent natural disasters have left chipmakers struggling to respond to a growing global imbalance in the semiconductor industry. However, this latest chip shortage is not an isolated occurrence but a symptom of a systemic problem that is not going away without rethinking the entire semiconductor manufacturing supply chain. The semiconductor manufacturing supply chain is rigid with a high barrier to entry and grave repercussions to supply glut are exacerbated by fast-cycling end markets. As a result, we are currently seeing the reverberations of decisions made over a decade ago by chipmakers and their equipment suppliers. Let me explain. Current chip shortages are not limited to critical components and specialized core processors.