The global semiconductor chip shortage has drastically affected various tech industries. The COVID-19 pandemic and the supply chain technicalities became a massive problem for the semiconductor industry. Likewise, it became a chain reaction, affecting various other departments. Tech giants like Samsung and Deloitte predict that the chip shortage might last for another year or so.
It began in early 2020 and is still causing trouble. A Deloitte report says the chip shortage might last until the end of 2022, likely extending to early 2023. On the other hand, experts from Samsung suggest that the chip shortage will continue up to the second half of 2022.
Fighting the chip shortage
The impact of the chip shortage is visible in various industries, including the smartphone industry, data centers, gaming industry, general electronics, and the automobile industry. The industry as a whole suffered financially as well. The cumulative revenue impact of the shortage estimates over $500 billion in lost sales globally from 2020.
The revenue amount lost will likely increase severely if the shortage continues. However, the companies are taking steps to heal the damage and workarounds. Sources told The Elec that Samsung would try to get annual contracts with chip foundries to ensure chip production capacity. The electronics-maker will also stock up to four weeks’ worth of chip supplies instead of two weeks.
However, many believe that the chip shortage is a one-time thing that will diminish soon, which is not true. There will be another chip shortage, and it might be as big or even more significant than the current one. Given the ever-increasing demand and supply shortages, it could become a catfight.
Deloitte said that it’s a near certainty that a combination of events such as a global recession, significant weather events, or anything catastrophic could occur simultaneously in the coming decade. The semiconductor industry is already quite vulnerable, and things could worsen in the long run. The problem has grown so big that a single organization cannot solve it alone.