Global Chip Shortage Set to Persist as Planned Supply Expansions Slow to Catch Up to Rising Demand
Jul 23, 2021
1034
Global demand for semiconductor chips continues to outpace supply, mainly driven by increasing procurement from both the consumer electronics sector and automobile sector in 2021, catching major semiconductor foundries TSMC and Samsung off-guard. In response, many major Asian chip manufacturers have hiked their prices by up to 20% this year. While both TSMC and Samsung have pledged to increase production capacity, market players project the chip shortfall to persist until 2022/2023.