Global semiconductor shortage puts pressure on tech supply chain

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Tech industry one of few sectors to experience growth during pandemic

www.taiwannews.com.tw, Dec. 18, 2020 – 

TAIPEI (Taiwan News) – Soaring demand for electronic devices such as smartphones, computers, gaming consoles, and cars has created a global shortage of chips, leading to manufacturing delays, as consumer demand bounces back amid the pandemic.

Chips that are used in processors and drive integrated circuits, as well as those that are used for power management and connectivity, are made by companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics (UMC) which are then shipped to various chip developers further down the supply chain, according to Nikkei Asia. The contract chip manufacturing market is dominated by TSMC, followed by Samsung, UMC, GlobalFoundries, and Semiconductor Manufacturing International Corp (SMIC), according to Trendforce data.

Surging demand for products like laptops, tablets, and mobile phones in the U.S. and Europe due to pandemic restrictions and a quicker than expected recovery in China for electronics and larger items like cars are helping to fuel the shortage, according to Reuters. "Since all compete for the same fab resources the shortage is across all of these sectors and others as well," said Kevin Anderson, a senior analyst at Omdia.

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