WHY SEMICONDUCTOR SHORTAGE A GLOBAL CRISIS ?

GLOBAL CHIP SHORTAGE LAST TILL 2023

Semiconductors have quickly become one of the richest and the rarest assets in the world. Semiconductor is tiny ingredients that play a major role in the construction of a massive number of Technologies. They are needed for the production of RAM, CPUs, and other hardware such as registers cash registers in modern cars, etc..

The world's leading chipmakers of semiconductors are trying to overcome the prolonged shortage of semiconductor chips that have temporarily stop the production of every home appliance to automobiles.

The chip makers are trying to make out the supply to changes in the manufacturing process and using spare capacity. But the bad truth is that there are no quick fixes, and this shortage will be continuing until next year. 

TSMC and Samsung are the lion shares in the chip-making business. Taiwan is dominant in manufacturing while South Korea also produces significant amounts. 

TSMC: 

Founded in Taiwan in 1987 by Morris Chang, TSMC was the world's first dedicated semiconductor foundry and is a leading company in its field. Nearly most semiconductor companies such as Advanced Micro Devices (AMD), Apple Inc., Broadcom Inc., Marvell, MediaTek, Nvidia, and Qualcomm are customers of TSMC.

Some integrated device manufacturers that have their own fabrication facilities like Intel, NXP, STMicroelectronics, and Texas Instruments outsource some of their production to TSMC. The first commercially available extreme ultraviolet lithographic process in the semiconductor industry is TSMC’s N7+.

Samsung Semiconductor: 

Samsung Semiconductor division manufactures various semiconductor devices, including semiconductor nodes, MOSFET transistors, integrated circuit chips, and a semiconductor memory. In the early 1990s, Samsung Electronics has commercially introduced several new memory technologies like SDRAM, DDR SDRAM, GDDR, SGRAM.

In 2010 Samsung also succeeded in mass-producing 30 nm class DRAM and 20 nm class NAND flash, both of which were for the first time in the world.

 It seems that about 88 percent of the semiconductor chips are being used by US Industries, including automotive and defense industries. 

Some of the critical issues to them are: 

 Low capability

 High Global demand

 Limited investment

The expensive and complex pieces of the Silicon chips from Qualcomm Nvidia or apple provide the smartphones and computers their intelligence.  

Studies reveal that by 2030 Asia will control more than 80% of the world's semiconductor manufacturing Supply.

Sony had struggled with a short stock shortage and also said that it might not hit the target for this year because of this issue. 

However, the world's second-largest buyer of chips, that is Samsung had to postpone the high-end smartphone due to this shortage. Samsung's co-chief executive was stating that “it is a serious imbalance”. 

Apple stated that “the worst-affected have been automobiles because they were last to the party”.  

Apple is almost spending 56 billion dollars a year on this chip and there is no sign of Supply while the prices keep on Rising.  "Expect the cars and phones to cost more ", stated Gambling.

Hyundai managed to avoid manufacturing disruption upon canceling any of chip orders yet it to will encounter shortages of silicon chips in April and the company is about to tweak its output to prioritize popular vehicles. 

Ford also reveals it is building Edge SUVs with missing chips and wait for the arrival of new silicon chips at which point it will complete its vehicle thereby sending it to dealers. It reduces its shifts and extends its shutdowns.

IBM has helped to strengthen the U.S. Microelectronics supply for years and now it has recently begun to lay a foundation to help them secure the supply chain also leading to the domestic next-generation AI chips for innovative future need the address.

 More than 90% of semiconductor chips consumed around the world are made in Asia. And while 50% of global demand comes from the U.S., only 12% of total production occurs here. The cost of the semiconductor-based components used is estimated to be $600 by 2030 from $475 in 2020.

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