COVID-19 has boosted the outlook of the market. Due to COVID-19, because of COVID-19 “freed-up” capacity of wafers at factories, foundries and IDMs were quickly filled with orders from consumer electronics firms due to the increasing demand. In light of the “just-in time supply” method, which generally does not require inventories producers were running out of chip supplies when demand from automotive companies was higher than what they had anticipated. This led to increase the chip shortage.
Front-end as well as back-end manufacturing depend on hundreds of chemicals and other materials. Lack of one kind of chemical can have an impact on all value chains and disrupt the manufacturing process.
The short version is that there numerous reasons for the global chip shortage. There were instances when Chinese firms began stockpiling chips to combat US relations and international concerns. The pandemic struck, and with it an increase in demand server and consumer hardware, there was a significant change to work from home. k7ic8rkwm9.