Title: Recent Shortages in the Semiconductor Industry | Source Today
Headings: Recent Shortages in the Semiconductor Industry
Recent Shortages in the Semiconductor Industry
How the Automotive Chip Shortage Became a Global Semiconductor Crunch
Enacting Long-Term Solutions

Content: Samsung has warned that the part scarcity could curtail its ability to manufacture smartphones. Lenovo recently stated the production of its hugely popular personal computers had been affected by the crisis. And Sony indicated the supply bottleneck would prevent it from meeting demand for its recently launched PlayStation 5 video game consoles. How the Automotive Chip Shortage Became a Global Semiconductor Crunch
The automotive chip crunch began in late 2020 after the worldwide car market recovered faster than expected. The timing of the segment’s recovery proved problematic because new car sales plummeted in early 2020. As people settled into the pandemic, the need for transportation was drastically reduced. Consequently, automakers slashed their electronic component orders due to a lack of visibility regarding the industry’s revival. However, consumer interest in new cars, particularly chip-dense electric vehicles (EVs), unexpectedly spiked near the end of 2020. As carmakers placed large rush IC orders, they found suppliers were short on inventory. Coronavirus-related lockdowns had prompted a digitalization wave that generated massive demand for new data center, personal computer, smartphone and video game console parts.