Why is there a global chip shortage? The main reasons for the global chip shortage are the overall recovery of consumer demand, the serious situation of temporary orders from customers, the expansion of production capacity by smart cell phone manufacturers, and the large capacity gap of chip foundries. 1. Overall recovery of consumer demand Whether it is automotive consumer electronics, notebook computers, smart cell phone and other categories, there has been a rapid rebound. Global semiconductor materials have risen sharply, and foundries are basically fully loaded. The current production lines of TSMC, UMC and GF are facing great pressure. Rising prices and full foundries have directly raised the product prices of chip manufacturers. For example, chip suppliers have told all partners that the price of all products will rise. 2. The customer’s temporary order addition is serious. This year, the situation is quite special, and there is a big deviation between the market situation and the expectations of the merchants, which leads to serious customer orders in the later period. For example, in order to speed up the hoarding of goods before September 15, the number of orders placed by various chip manufacturers has increased sharply. In order to meet Huawei’s supply requirements, the number of orders placed by manufacturers to semiconductor material manufacturers has also increased sharply, which eventually led to the early release of the entire production capacity. 3. Smart cell phone manufacturers expand production capacity Next year is the key year for the full promotion of 5G smart phones, and various cell phone manufacturers are now gearing up to do a big job. So far, Xiaomi is expected to ship 300 million units, Honor is aiming to ship 100 million units, and Apple is aiming to ship 230 million iPhone units. The surge in shipments has put the entire market in a state of shortage of components. Global chip shortage hits cell phone and game console industries: In recent weeks, more and more industry leaders have warned that they can’t get enough chips to make their products, according to Wall Street News. Apple recently said sales of some of its new high-end iPhones were limited by component shortages. Both NXP and Infineon say these supply constraints are no longer limited to the automotive industry. Sony said on Wednesday that it may not be able to fully meet demand for its new game consoles in due to production bottlenecks.
Why is there a global chip shortage
