Computer chip shortage? That may limit availability of microwave ovens, & cars. U.S. national defense? "Smart" bombs have computer chips too. Danger?

sear

Administrator
Staff member
By Dashveenjit Kaur | 26 March, 2021
  • The Asia Pacific is also the world’s biggest market for semiconductors, accounting for 60% of global semiconductor sales, with China alone accounting for over 30%
  • Intel believes it is not “palatable” that so many computer chips are made in Asia
  • Now, Intel plans to spend US$20 billion on US chip plants to challenge Asia dominance
The shortage in chips, considered as the “brain” within most performance electronic devices in the world, has been steadily worsening since last year. What started as a temporary delay in supplies within the semiconductor industry, turned into an ongoing crisis as production quotas return to normal, thus causing a new surge in demand.
In fact, the production of semiconductors has steadily declined in the west, with East Asia emerging as the main manufacturing hub. Within the Asia Pacific region alone, China, Japan, South Korea, and Taiwan together have become the “Big 4” semiconductor players, holding four of the top six spots by overall semiconductor revenue and each has several global semiconductor giants. The region is also the world’s biggest market for semiconductors, accounting for 60% of global semiconductor sales, within which China alone accounts for over 30%.
The US’s share of global semiconductor manufacturing capacity fell from 37% in 1990 to just 12% last year, while Europe saw a 35 percentage points decline in the period, to 9%. China’s mainland expanded its share from almost nothing to 15%, a figure that is expected to rise to 24% in the next decade, according to analysts.

https://techwireasia.com/2021/03/is-the-world-too-dependent-on-asias-semiconductor-industry/

Some effort is being made to increase U.S. semiconductor production capability. We can offer our sincere thanks to the men & women party to that effort. But in proportion to the problem it may seem little more than perfunctory.

What are the risks of relying on the status quo supply?
Is it a severe enough problem to take action?
If so, what action?
 
Back
Top