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Topic:Kingtronics - Why is there a global chip shortage?
Content:
We have to look at several factors that created this shortage tsunami that blindsided everyone. We have broken them down into the following: supply, demand, unfortunate events, and poor decision-making.Surge in DemandWhen Covid-19 restrictions rolled out worldwide, stay-at-home mandates were the norm to prevent the transmission and spread of the virus. Everyone shifted to work from home setups, businesses went online, and messaging applications were downloaded immediately. Consequently, demand for additional electronic gadgets skyrocketed. People upgraded their laptops, purchased new desktops, more tablets, etc., to meet the requirements of the current situation.This bottlenecked supply chains, as retailers did not prepare for the sudden increase in demand for new requirements. Add the existing projects in their pipelines, and you have the perfect recipe for a global semiconductor disaster.Bad LuckAside from facing COVID-related challenges, some of the biggest foundries in the world we
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