Integrity Score 2097
No Records Found
No Records Found
No Records Found
Tesla anticipated the crisis and tried to go around it by rewriting its vehicle software to support alternative chips due to the global shortage of critically important semiconductor chips. This helped maintain a modicum of normality in production, but this cannot go on according to Tesla for normal production of its various products. [https://www.theverge.com/2021/7/26/22595060/tesla-chip-shortage-software-rewriting-ev-processor]
After Tesla CEO Elon Musk, another world tech leader, Apple, warned that it was facing a semiconductor shortage and that the production of iPhone and iPads could be affected because of it. Apple CEO Tim Cook called it a "industry shortage" stressing the seriousness of the problem at hand. Apple shares fell soon after Cook expressed his fears. [https://www.cnbc.com/2021/07/27/apples-iphone-hot-streak-will-run-into-global-chip-shortage.html]
If the top companies like Tesla and Apple are facing a shortage of chips, how serious is the issue in the world? The semiconductor chips are used in most electronic products ad cars as they drive various functions ranging from computing to storage and memory. The chip shortage first hit the big automakers who had to cancel their chip orders last year because of low demand after coronavirus. The chips found greater demand in electronic devices and other equipment related to the Internet. When the industries recovered, there was a considerable shortage.
The US chip industry accounts for about 47 percent of the global market share in sales but has only 12.5 percent in chip manufacturing capacity, as per Semiconductor Industry Association (SIA). According to Goldman Sachs, the disruption of the global chip supply chain had affected as many as 169 industries. [https://analyticsindiamag.com/explained-global-chip-crisis-in-numbers/]
The situation is so serious that the U.S. government has announced new funding measures for chip makers to enhance production. The U.S. is currently primarily dependent on Taiwan and South Korea for the chips. Major chip-maker Intel has announced plans to build two new chip facilities in the U.S. by investing more than $20 billion, but it will take time for these factories to start production. [https://www.foxbusiness.com/economy/global-semiconductor-shortage-causes]
Read more:
The risk of chip shortage:
https://asia.nikkei.com/Business/Tech/Semiconductors/Apple-s-iPhone-warning-underscores-risk-of-chip-shortage-into-2022
Chip crisis in numbers:
https://analyticsindiamag.com/explained-global-chip-crisis-in-numbers/#:~:text=The%20global%20chip%20shortage%20crisis,had%20to%20make%20alternative%20arrangements.
Chip shortage explained:
https://www.power-and-beyond.com/the-global-chip-shortage-explained-a-1015300/