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Global Chip Shortage Write for Us

Global Chip Shortage Write for Us_

Global Chip Shortage Write for Us – Global Chip Shortage is a computer chip or semiconductor control from cars to customer electronics, such as PCs, gaming consoles & smartphones. The new shortage in its valuable resources has important implications for customer prices, company profits, service inflation & even national security. You can email us at contact@readwriteart.com

While we expect the chip block to ease somewhat in the year’s second half, more robust demand for semiconductors is set to stay mostly for car companies. Over the longer term, we think a semiconductor supercycle with continued demand from traditional causes such as customer electronics supplemented by growing demand from newer sources such as chips for artificial intelligence AI applications.

Though we see significant opportunities in the semiconductor sector, we are watching a variety of risks as we assess which companies are likely to be winners & losers in the anticipated supercycle.

What is Driving the Global Chip Shortage?

So, two key factors are driving the shortage. A covid-19 caused trouble to supply & demand dynamics & ongoing geopolitical tensions between the U.S. & China.

Demand for home appliances increased during the pandemic as millions of people were forced to work or study from home. His global PC shipments grew 10.7% in Q4 2020 and 4.8% for the whole year, with 275 million units shipped in 2020, the highest growth in a decade. Did. At the same time, demand for automotive chips fell as new car orders declined in the first half of 2020. It has led to a shortage of production capacity for industrial chips. When demand from the auto sector picked up in late 2020, car companies couldn’t get enough.
What is Driving the Global Chip Shortage?

What does this mean for Inflation?

We have seen inflationary pressure on information technology hardware prices due to the global chip shortage. This long-term phenomenon could raise the barriers to entry for the semiconductor industry, given its increasing capital intensity. Chinese home appliance makers have begun announcing the most significant price hikes in decades. It is partly due to the shortage of raw materials such as substrates and wafers. The macroeconomic implications are that supply shortages can increase prices, lowering retail sales and profit margins for semiconductor-intensive devices.

A 10% increase in automotive chip prices would increase the cost of producing cars by about 0.2%, so this cost increase is unlikely to result in a significant rise in the global consumer price index.

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