Paris: The lack of semiconductor has sent shock waves through the global economy, squeezing supplies everything from cars to headphones.
The scarcity of chips has exposed the dependence of the modern world to these mincule components, computer basic building blocks that allow electronic devices to process data.
Why does the shortcomings occur, and what can be done about it? The beginning of the Covid-19 crisis at the beginning of 2020 pushed the global shopping spread on electronic items – from extra monitors because people rushed up home offices, to television and game consoles to defeat bored.
Temporary factory closure because the pandemic also puts pressure on inventory.
And as plants reopened, electronic goods manufacturers continue to order – creating a backlog that continues to increase for chips, which can only be a small portion of millimeters.
Pandemic is not the only factor.
Brief storm stopped production in several factories in Texas in February, and the fire tore the Japanese factory in March.
US-Chinese tensions are also part of the story.
Last August, the US banned foreign companies that chips using American technology from sales to Chinese technology giants Huawei, on charges of espionage.
Huawei began hoarding semiconductors before sanctions that began to apply, and other companies followed their superiority, further inventory.
The car industry has become the most visible victim so far, with many brands forced to slow down their output in recent months.
As a car maker cut production at the beginning of the pandemic, their chip suppliers turn to clients from other sectors – namely electronic goods makers in high demand because of a pandemic.
It has left the car brand, from Volkswagen to Volvo, scrambling to get semiconductors now the sale returns.
Smartphone makers are relatively protected as far as they have existing stock chips, but they also begin to suffer.
CEO of Apple Tim Cook warns this week that the shortcomings are set to achieve iPhone and iPad production.
Smaller phone makers are likely to be affected, analysts say.
Console games such as Playstation 5 and Xbox Series X are also concerned.
So great cries among gamers to get a chip-powered graphics card needed to play them, that they have used an increasingly unusual strategy.
Die-hards are set to streaming directly on YouTube and Twitch, which sounds an alarm every time a registered card for sale online.
The government is in a hurry to increase the capacity of making their chips.
In May, South Korea announced an investment of $ 451 billion in its efforts to become a semiconductor giant, while the US Senate last month chose to $ 52 billion in subsidies for chip plants, known as “fabs”.
The European Union strives to double the share of global chip capacity to 20 percent of the market in 2030.
But the factory cannot open overnight – especially those that make semiconductors, complicated processes involving layers of chemicals into silicon.
“Building new capacity takes time – for new fabs, more than 2.5 years – so most of the expansion that starts now will not increase the capacity available to 2023,” said Ondrej Burkacky, a Global Senior Semiconductor partner practicing at McKinsey’s consultation.
He added that long-term factors also mean global demand in “hyper growth”, such as trends to companies that store their data in the cloud, requires more data centers to be built – sites that use many chips.
Jean-Marc Chery, CEO of Franco-Italian Chip-Maker Symicroelectronics, said the order for next year has exceeded its company’s manufacturing capacity.
There is extensive recognition in the industry that lacks “will last to a minimum of next year,” he said.
Analysts said sustainable extortion could lead to higher prices for consumers.
SEB, French kitchen equipment makers such as Blender, have warned that it was forced to climb the price.