Peter Voser, the chairman of ABB, the Swedish-Swiss tech and engineering giant, believes that the global shortage of semiconductors is being sorted out after years of disruption to supply chains. This shortage has had a ripple effect on the global economy, and was particularly challenging for ABB in 2022. In 2023, Voser expects an improving outlook in China while the rest of the world experiences lower growth. The slowdown in economic activity has helped balance out the shortage, and the US has taken measures to boost the domestic production of chips. Voser also noted that tensions between China and Taiwan are a risk to watch moving forward.
Global growth slowdown is also a factor for why the semiconductor industry has turned the corner and supply has increased. However, the shortage has shown the world’s dependency on semiconductors, especially in Taiwan. Hopefully, the newly passed CHIPS act will attract manufacturers to create microprocessors domestically.
https://www.cnbc.com/2023/01/17/worst-is-over-for-global-chip-shortage-abb-chairman-says.html
1 comment:
It felt like there has been a "perfect storm" that has caused disruptions to the semiconductor market in the last few years. There were so many factors that led to the global chip shortage including;
-The pandemic which created major supply chain issues across the globe
-The trade war between the U.S and China
-Natural Disasters in Taiwan (which controls 65% of the market)
-Russia invading Ukraine
All of these have made it very difficult for the semiconductor shortage to be resolved but, interestingly, an economic slowdown is helping the chip market recover. I do still think the ongoing tensions between China and Taiwan are of major concern as Taiwan controls the majority of the CHIP supply. This is all the more reason for the US to focus on producing more semiconductors domestically.
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