Why is there a semiconductor supply shortage?
The emergence of the COVID-19 pandemic began with lockdowns in China, putting an abrupt restriction on China's semiconductor trade with the rest of the world. Simultaneously, automakers around the world, anticipating a drop in car sales, suspended large volumes of production.
How long will semiconductor shortage last?
But the larger impact has come from skyrocketing demand for technology products, and the long lead times required to build the fabrication plants that supply their chips has led to a chip shortage that has often played out unevenly but has affected nearly every end market in some way.
Why is there a semiconductor shortage 2022?
The Department of Commerce says it's clearly demand, not just supply constraints, that are bogging things down, with 17 percent higher demand for chips in 2021 vs. 2019. Now, the industry has just five days' worth of inventory on shelves, down from 40 days' worth in 2019.
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