A global shortage of semiconductors is affecting everything from smartphone sales to car manufacturing. Disruption caused by Covid-19 has collided with an unprecedented surge in demand for electronics, says Wallace Witkowski for MarketWatch. Research firm IDC reports that PC sale volumes are expected to advance by 18% this year. Global shipments could hit 357.4 million computers, beating the record set in 2011.
Car makers have been particularly badly hit by the shortages; many cancelled chip orders when the pandemic hit, only to be surprised by the strength of demand for new vehicles. The shortage means it’s a good time to be a chip maker. The PHLX Semiconductor Index has gained 92% in a year. Building a new manufacturing plant can take two years and costs several billion dollars, so analysts say the shortage is likely to persist at least into next year.
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