Global Semiconductor Shortage Disrupts Over 169 Industries From 2020 to 2023
A worldwide chip shortage between 2020 and 2023 impacts major global industries by drastically reducing the supply of essential integrated circuits. The crisis causes severe price increases and long delays for automobiles, electronics, and household appliances.
A worldwide chip shortage between 2020 and 2023 disrupts more than 169 industries by causing major price increases, long queues, and widespread reselling among consumers and manufacturers. The crisis severely impacts the availability of automobiles, graphics cards, video game consoles, computers, and household appliances that rely on integrated circuits to function.
The COVID-19 pandemic triggers this severe supply chain disruption by shifting many countries to a stay-at-home economy, which drives a 13 percent increase in global demand for personal computers. Manufacturing bottlenecks in semiconductor hubs like South Korea and Taiwan further constrain the global supply, causing lead times for essential chips to stretch from 12 weeks to over 22 weeks.
Severe weather events, including devastating droughts in Taiwan during the summer of 2021, exacerbate the manufacturing crisis by limiting the ultrapure water required to clean factories and silicon wafers. These compounded factors force consumers and businesses to navigate prolonged shortages and significantly higher prices across a vast array of everyday technology products.