Semiconductor shortage in the World

Semiconductor shortage in the World

Additional power outages have begun in Taiwan. Power plants are failing as demand for electricity has skyrocketed due to heat and drought. Taiwan is a leading semiconductor manufacturer and its electricity problems threaten to exacerbate the global chip shortage.

And their deficit is already being felt. Some automakers are already shutting down factories for chip shortages. So, the Japanese Mazda due to the global shortage of semiconductor chips will not release about 100 thousand cars during 2021.

In the optimistic scenario, the backlog from the production plan will be 70 thousand units. In a word, the coronavirus was not enough for us – now there is also a shortage of semiconductor components, which are produced in only a few places, and are used almost everywhere. On the one hand, after the quarantine, the demand for all kinds of gadgets has grown in the world. Their manufacturers took over all the stocks from the manufacturers of household appliances and cars. On the other hand, the world’s largest semiconductor plant (17% of the market) suddenly burned down in Japan in March.

In addition, in February, abnormal frosts and storm winds partially paralyzed energy supplies in the US state of Texas, where a large number of microelectronics enterprises are concentrated thanks to low taxes. Due to the lack of electricity, they had to temporarily suspend production. In Austin, the plant of the South Korean giant Samsung and two factories of the Dutch company NXP, one of the world’s largest suppliers of chips for the automotive industry, have stood up. And on top of that, the elements are raging in Taiwan, home to the giant Taiwan Semiconductor Manufacturing Company (TSMC) – about 55% of the world’s chip production. By the sum of the factors in the global electronics market, there is a shortage and panic that will last up to two years – until China, the United States, Korea, Japan and Europe launch their new production. And it is not a fact that its volumes will satisfy existing needs, which are only growing. There is little need to rely on China in this regard. Most of the largest local semiconductor equipment companies produce chips ranging in size from 14 to 28 nanometers, which are two or three generations behind the world’s most advanced chips.

Moreover, China itself is the largest buyer of semiconductors. In 2020, imports of chips in China reached $ 350 billion, which exceeds the value of imported crude oil in the same period. But this, as it turns out, is not the limit. In March 2021, China’s semiconductor imports beat last year’s record – the country bought 59 billion semiconductors worth $ 36 billion. A month ago, Joe Biden held a video conference at the White House on the global semiconductor shortage, to which he invited two dozen leaders of leading American corporations in the field of information technology, microelectronics and the automotive industry. One of the measures worked out during this meeting is the introduction of protective import duties. Which, of course, will spur Beijing to develop its own production. Europe is also tightening up. Thus, the German concern Bosch announced that it is completing the largest investment project in the 130-year history of the company and will officially open its new plant in Dresden in June. The venture, which has invested about 1 billion euros, will produce chips for electric and hybrid vehicles. This is how the world is changing before our eyes – the strategic resource used to be oil, gas, and before that wheat, hemp, ship timber. Today, semiconductor crystals are becoming a strategic resource. It is for him that the world powers will compete.

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