Microchip Semiconductor Supplier, Why Is There A Short For Microchips Today?

The problem of shortage of Microchips started in 2020 when due to Global Pandemic, there was less supply of microchips as compared to its demand. Microchips or Integrated Circuits (IC) are essential parts of all digital products. They make these devices faster and cost less too.

That’s why its shortage has affected several industries all around the world. Here are the 3 reasons behind this shortage of Microchips.

Microchip Semiconductor Supplier

1.      Rising needs of the Global Automobile Sector

When Global Pandemic hit the world in 2020, these manufacturers predicted a decline in the sales of automobiles and canceled their orders for semiconductors. However, now they are facing a rising need for circuit boards for computerized panels, and security systems but not enough semiconductors to keep up the production.

2.      On-Demand Semiconductor Production is not possible

The Semiconductor Factories cost billions to set up along with managing the staff. Also, manufacturers need to coordinate with the supplier at least one year in advance. Before the global pandemic, it was easy to predict the demand in the market, and hence, orders could be placed accordingly.

However, at the beginning of 2020, manufacturers predicted wrong and now there is not enough supply for the rising demands.

3.      Rising demand for Electronic Devices

During the pandemic, there started a rise in demand for electronics as people stuck at home wanted new devices to occupy themselves. But the supply was not enough for the demand and hence, that led to a shortage.

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