The Global Semiconductor Chip Shortage: Causes, Implications, and Potential Remedies

TLDR

Since 2020, a global semiconductor shortage has strained industries worldwide, with the COVID‑19 pandemic exposing pre‑existing supply‑chain vulnerabilities. The study offers an overview of the semiconductor supply chain, concentrating on its primary weaknesses. The authors analyze the supply chain to pinpoint these vulnerabilities. They identify the root causes of the shortages, assess their industry impacts, and propose targeted remedies.

Abstract

Since 2020, there has been a major supply shortage of semiconductors across the globe with no end in sight. As almost all modern devices and electronics require semiconductors, many industries are struggling to meet strong consumer demand. The covid pandemic is not only to blame for this shortage, for instance the semiconductor supply chain contained already many vulnerabilities and weak points that were merely exasperated by the current situation. In this paper, an overview of the semiconductor supply chain is performed with a focus on its main vulnerabilities. The main reasons behind the shortages are discussed and the impacts on many industries are examined. Finally, recommendations and remedies are suggested.