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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Content: 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. Shortages include less critical but still crucial components, such as power regulation, which is used across a wide range of end devices. There has been extensive coverage of these shortages impacting the automotive industry, but all industries competing with consumer electronics giants for the same components used in both an electric car and your iPhone will feel the impact. Why? Because these less critical but crucial components are largely manufactured using legacy equipment no longer in production and at fabrication centers whose capacities are nearly maxed out. As smart devices proliferate, demand for these components will only increase across all end markets.