Traces of chip shortages lead to Asia – The situation is no treat for chip makers either

Due to a crying shortage of chips, the Playstation 5 game console, launched a year ago, is still not available in stores, which is why Europe registered the fewest new cars in September since 1995.

Why simply can’t more chips be produced?

Inderesin economist Marianne Palmu recalls that Asia in particular is a major source of electronic components.

“Factory production there is still affected by the pandemic, and the situation has gone even worse. Although the economy and demand have recovered elsewhere, not all the problems caused by the pandemic have yet been resolved. ”

The situation is not just a treat for chip makers either, i.e. for example Intelille, Taiwan ­Semiconductorille, Quoalcommille, Nvidialle and Broadcomille.

The level of technological demand has grown exponentially, and the competition will not succeed except by blaming astronomical sums on investment. For example Samsung is investing € 100 billion in production expansion this decade to catch up with its Taiwanese competitor.

Of the components much sought after in a race, smaller companies tend to disappear.

“When a component manufacturer has a customer of EUR 1 million and a customer of EUR 1 billion, it prefers to keep a customer of EUR 1 billion satisfied,” concludes OP’s Antti Saari.

Source: Arvopaperi by

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