The global chip shortage began as a demand for chips unexpectedly skyrocketed over the last two years. International stay-at-home orders led to unprecedented use of smartphones, tablets, and streaming devices. During the height of Covid-19, chip production was virtually stopped because of the global shutdown of production facilities. While, Ports around the globe were forced to shut down, creating massive supply chain delays.
According to the Semiconductor Industry Association, worldwide chip sales dropped 12 percent in 2019. The group forecasted that global sales would grow by 5.9 percent in 2020 and 6.3 percent by 2021. The most recent figures show that sales increased 29.7 percent between August 2020 and August 2021. The increased demand also comes from industries such as automotive due to the adoption of technologies like driver assistance systems, push-to-start, and autonomous driving features.
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