According to the Wall Street Journal, the global semiconductor shortage has been getting worse. Buyers are hoarding their products, demand didn’t slow down as anticipated, and supply routes have become clogged. Unforeseen production issues hampered factories running at full capacity. Buyers trying to place new orders are receiving delivery dates in 2024, according to the operations director at electronic-components distributor Princeps Electronics Ltd; Ian Walker. The $464 billion semiconductor industry cannot keep up, which has resulted in lost revenue.
The global chip shortage has hit the auto industry the hardest. TSMC, the world’s largest contract chip manufacturer, has increased auto-chip production by 60%. However, carmakers are struggling to recover as factory closings continue and estimates of losses increase. Last week, General Motors and Ford reported steep drops in Third-quarter profits due to the chip shortage. Both companies stated that they expect the semiconductor situation to improve over the next year.
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