The automotive sector has suffered the most this year, but the supply of semiconductors could improve relatively soon, with China producing some of the output that Taiwan cannot achieve, ING economist Iris Pang said, according to Agerpres.
Taiwan’s semiconductor companies have increased production in China after power outages and rising COVID-19 cases affected Taiwan’s production and port operations, added Pang, who warned that chip supply problems persist and smartphone makers will face difficulties in the future.
According to the quoted source, companies around the world have warned about the effects of the shortage of semiconductor supply.
Adam Khan, founder of AKHAN Semiconductor, said the problem could persist into the second quarter of 2022. Andrew Feldman, CEO of startup Cerebras Systems, warned that manufacturers are waiting up to 32 weeks for new chips and components. .
The shortfall in chip supply, which affects carmakers around the world, is the result of a combination of factors. Automakers shut down factories for two months during last year’s COVID-19 pandemic and canceled chip orders. At the same time, however, the demand for chips has increased in the electronic equipment industry, as people have been forced to stay at home, which has led to increased sales of laptops and video game consoles. Now car manufacturers have to compete for chips with electronics manufacturers.
The EU wants to reach 20% of global chip production by 2030
The European Commission launched two new industry alliances last week, the Alliance for Processor and Semiconductor Technologies and the European Alliance for Industrial Data, Edge and Cloud.
According to the EU executive, the two new alliances will advance the next generation of microchips and cloud / edge industrial computing technologies and provide the EU with the capacity to strengthen its critical digital infrastructure, products and services.
Industrial Alliance for Semiconductor Processors and Technologies
“Microchips, including processors, are key technologies that power all the electronic devices and machines we use today. Faces are the basis of a wide variety of economic activities and determine their energy efficiency and security levels. The development capabilities of processors and chips are crucial to the future of today’s most advanced economies. The Industrial Alliance on Semiconductor Processors and Technologies will be a key tool for further industrial progress in the EU in this area, the European Commission said.
According to the European executive, the alliance “will identify and address current bottlenecks, needs and dependencies across the industry, ensuring that Europe has the capacity to design and produce the most advanced chips, while reducing its overall strategic dependencies by increasing its share of global semiconductor production at 20% by 2030. ”
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