The world is currently facing a chip crisis, with semiconductor shortages affecting industries and economies across the globe. Now, the chip shortage has neared the ‘Danger Zone’ as wait times for shipments have reached a new record high, but Taiwan promises to keep supplying chips across the globe.
According to a Bloomberg report, the chip shortage has even hampered recovery of economies post the Coronavirus pandemic and has caused a major gap between chip orders and deliveries. At the moment, the wait times have reached a whpping 17 weeks in back in April 2021. This is indicative of the fact the clients are struggling to secure a stable supply, as per a research by Susquehanna Financial Group. The 17 weeks lead time is the highest the group has ever recorded and has even marked the situation as the ‘danger zone.’
Amid this crisis, the Taiwanese government has pledged to work on providing the world with a steady chip supply despite the growth of the COVID-19 pandemic. Notably, the government also adjusted its GDP projections for this year, raising it by 4.64 percent in preparation of a global ‘scramble for semiconductors’ that will cause a surge in exports, as per an SCMP report.
Currently, the global chip shortage has affected variou indutries including automobiles, smartphone, home applicances, and other as well. Just in this year alone, automakers are expected to lose out on a reported 110 billion US Dollars in sales. So, it remains to be seen how the situation plays out as many chip makers are rushing to start the operations of new chip plants to raise chip supply in various regions.
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