Global Electronic Component Shortage Could Last Until Mid 2022.
The global electronic component shortage that is wreaking havoc on supply chains could last until 2022. From Samsung to Ford, availability of the components has slowed and prices continue to rise for consumers. As a result of the pandemic, consumer habits have changed generating a struggle to meet demand.
Pressure in the automotive industry, a boom in the sale of TV’s and home computers, the launch of new games consoles and 5G technology have all contributed to the surge in demand.
TSMC Announces $100 Billion Expansion Plans Over Next Three Years.
Taiwan Semiconductor Manufacturing Company announces a $100 Billion Expansion over the next three years. This expansion will help to address booming demand for new technologies. TSMC is the largest manufacturer in the semiconductor industry and are already planning on a record capital expenditure of $28 billion this year.
Despite that extreme growth, there is still a need for greater semiconductor supply. TSMC has promised to work with consumers across industries to overcome this surge in demand.
Unpredictable Fire at Japan's Renesas Plant Causes 1-Month Halt - Affecting Supply Chain.
An unpredictable fire at Japan’s Renesas Plant has caused a halt in production that will last at least one month, greatly affecting the supply chain. An electrical fault caused a piece of machinery to catch fire, pouring smoke into a sensitive clean room. Renesas has about a 30% share of the global electronic component market for the automotive industry.
This could not have happened at a more unfortunate time, as the industry has been scrambling to respond to the large Texas winter storm that knocked out production at additional suppliers, and the growing need for electronic components supply as a result of consumer demand.
Currently, there is no end in sight to how the electronic component industry will respond to consumer requests and the automotive industry’s need for component supply. The news that TSMC is planning to greatly expand in the coming years is good news for the future, but for now the electronic component industry will be watching and waiting.