The semiconductor shortage has affected the tech industry in a lot of ways, but it’s not all bad. While some products have been delayed or discontinued by companies such as Apple, others are working around the issue and coming up with innovative solutions that are giving their consumers a reason to purchase even more.
Semiconductor shortage in the industry
The semiconductor shortage has had a serious impact on the tech industry, impacting some of its big players. This shortage is related to the increased demand for electronics, especially in the automotive market.
What is a semiconductor?
A semiconductor is a material that can conduct current in one direction and not the other, thus it has properties of both. Semiconductors are also known as semi-conductors because they process electricity in an intermediate state. They are found in numerous items such as computers, cell phones, watches, and microwave ovens.
Economic impact of the semiconductor shortage
It’s been a struggle for some computer manufacturers and tech companies to produce their products due to the shortage of chips. This lack of chips has caused a decline in the amount of money in the market, which has led to lower stocks, futures, and more scarce materials.
Solutions for semiconductor shortage
The semiconductor shortage has been especially hard on companies that make components for products like smartphones and computers. These companies have seen their revenue drop by two third with the remaining third of their revenue still falling. They are expected to see a 9% decrease in the average price of such products. There are many possible solutions, one being new materials that can be used to make semiconductors without needing rare metals.
Consequences of semiconductor shortage
While the semiconductor industry has been dealing with a shortage of raw materials, the consequences of this trend have been significant. In research and development, it has resulted in a decreased ability to produce new electronic devices and materials. There is also an increased production cost due to higher demand for certain types of microchips.