Case Study: Semiconductor Shortages

Due to ongoing supply chain shortages and production delays for semiconductors, buyers are scouring the market to secure supplies for their products. In addition to supply chain shortages, businesses are also gathering supplies as a preventative measure for future uncertainties. There was an over 30% increase in orders for semiconductors from Taiwan for Chinese and American production this year. In March alone, there was a record high number of semiconductors ordered too.

Some of the products that require semiconductors are consumer electronics, telecom, medical devices, surgical machines, personal computers, TVs, and cars. One of the most demanding sectors, with increasing priority, is electrical vehicles (EV). As EV production increases, there’s an even further demand for chips and the necessity to meet environmental goals set by various nations. Companies are trying to plan more appropriately and think creatively for solutions. Both the Chinese government and US government can agree that a semiconductor shortage is concerning and could inhibit or delay the rollout of electric vehicles that would accomplish global green goals.

In addition to supply risks, China, and the US account for 25% of the world’s semiconductor purchases for their respective products. While producers try to find a swift resolution for…