How did it all start?
And here, too, the coronavirus played a role. Boom in sales triggered by lockdown
The main reason is the digitalization of everything and everyone, the transition to online, the increase in traffic volumes, etc. The industry was not ready for such a stir.
As a result, we have a global shortage in the chip market that threatens the normal operation of many industries, from automotive to laptop and industrial systems.
Fiat Chrysler was one of manycarmakers forced to shut down their factories this year as chipmakers in Taiwan and China struggled to keep up with non-automotive orders.
How serious is it?
According to J.P.Morgan, semiconductor supply volumes in various industries are 10-30% lower than the needs of these industries. In order for the industry to be able to increase production volumes, it takes from 6 months to a year.
During this entire period, we will observe problems with the supply of various systems and devices where chips are used.
More than 280,000 vehicles have already been frozen, according to AutoForecast Solutions. IHS Markit predicts that up to 500,000 vehicles may simply not be produced.
Despite the fact that the chip makers have succeededfor a while to "squeeze" the automotive industry, for them, a period of turmoil also began. California-based Intel, which replaced its chief executive this month, is trying to take back the crown of the leader in advanced chip manufacturing from Taiwan's TSMC.
- Trade War
Another negative factor for the entire market is the trade war between the United States and China. And this is another negative factor that provokes a decline in production volumes.
Taiwan-based TSMC is struggling to cope with the fallout from US sanctions against Chinese telecommunications group Huawei and chip giant Semiconductor Manufacturing International Corp.
The sanctions have led some customers to redirect their orders from SMIC to other manufacturers such as TSMC. Serious panic is growing within the industry, the shortage of chips is too great.
- Natural factor
Plus, in Taiwan, whose factoriessupply a huge number of chips, there are always some natural problems. Those were typhoons, floods and earthquakes, now there is a lack of water.
The reservoirs of the region are filled by about 20%,which makes the authorities persistently recommend industrial companies to reduce water consumption by 7-11%. Well, without water, it will not be possible to increase production volumes.
As a result, TSMC and VIS, according to Reuters, began to enter into contracts for the supply of water in tanks to avoid interruptions in water supply.
Who Suffers From Chip Deficiency?
Almost everyone except the chip makers themselves. Now there is an unprecedented demand for their services, which will not decrease in the foreseeable future.
Over the past year, the PHLX stock indexSemiconductor, which tracks dozens of shares of the largest chip manufacturers, has grown by 65% at once. At the same time, the S&P 500 industrial index rose by 17%, the high-tech Nasdaq Composite index - by 43%.
- Car manufacturers
Earlier it was reported that everyone now has problems,who uses modern semiconductor chips in production. For example, in the automotive industry - here such giants as Nissan, Toyota and Volkswagen are going to cut production volumes.
And not because they lack opportunitiesto fulfill the plan, but because there are no chips that are equipped with modern cars. Now a car is not only a vehicle, but also a high-tech electronic system, a server on wheels.
- Laptop and TV manufacturers
This crisis has not yet led to a shortage in the supply of laptops and TVs that use the IC (DDI) chips needed to power electronic displays.
However, analysts warn that such a deficit is still quite possible, as many countries maintain lockdown or coronavirus restrictions.
Apple recently announced that the volumesproduction of the new iPhone 12 is constrained by a shortage of Qualcomm components. European companies NXP Semiconductors NV and Infenion Technologies AG indicate that the deficit is affecting more and more industries and individual manufacturers.
- Gaming consoles
Sony said it would not be able to fullymeet demand for PlayStation 5 in 2021 due to component shortages. In addition, there has been a noticeable rise in chip prices. Over the past few months, they have risen in price by 15 percent.
- Russian companies
The scale of purchases of chips by Russian companies,of course, it's hard to compare with giants like Apple. So it is hardly necessary to speak of a deficit, but supplies are likely to arrive late.
Consequently, costs increase, and thereforeproduct cost. Vendors interviewed by Izvestia say they have increased by 20-30%. The association of trading companies and manufacturers of electrical and computer equipment (RATEK) has so far refrained from assessments. According to the representative of RATEK Anton Guskov, consumers are unlikely to notice changes until spring.
What does this mean for consumers?
The waiting time for cars ordered from dealers may increase, and some gadgets may become scarce.
Major players like Samsung and Applehave sufficient financial capacity to be at the head of the queue to meet their needs. But smaller companies may suffer much more.
All this means that products may become more expensive, or at least not become cheaper after some time after entering the market, as is usually the case.
Ben Wood, expert at the consulting firm CCS Insight
Therefore, experts advise not to wait, but to order the necessary gadgets, since it is not known whether they will be available in a month or two.
How did this affect Russia?
Problems with the supply of elements are also noticed inRussia, says Denis Kuskov, general director of the analytical agency Telecom daily: “On the market of components, boards, processors, and various precious metals that are used are in short supply, there are interruptions.
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