"The Semiconductor Chip Shortage Is Turning Into A Crisis"

 Source:

https://www.zerohedge.com/markets/semi-chip-shortage-turning-crisis

" ...  the shortage is going from being a nagging pain in the auto industry, to a full scale crisis that is also affecting consumer electronics like phones and gaming consoles. 

 

It is now being referred to as the "most serious shortage in years", with Qualcomm's CEO saying last week that there were now shortages "across the board", according to Bloomberg. 

... Apple said recently that its new high end iPhones were on hold due to a shortage of components. 

NXP Semiconductors has also warned that the problems are no longer just confined to the auto industry. 

Sony also said last week it may not be able to to fully meet demand for its new gaming console in 2021 due to the shortage. 

... Neil Mawston, an analyst with Strategy Analytics, said: “The virus pandemic, social distancing in factories, and soaring competition from tablets, laptops and electric cars are causing some of the toughest conditions for smartphone component supply in many years.” 

Mawston says that prices for some smartphone components are up as much as 15% the last 6 months. 

At the center of the shortage is Taiwan and its largest company Taiwan Semiconductor Manufacturing Co. 

... Huawei is being blamed for hoarding components in 2020 (almost as if they knew this was going to happen). 

... Huawei Technologies Co. -- a major smartphone and networking gear maker -- began hoarding components to ensure its survival from crippling U.S. sanctions. 

Led by Huawei, Chinese imports of chips of all kinds climbed to almost $380 billion in 2020 -- making up almost a fifth of the country’s overall imports for the year.

... the stay-at-home era spurred sales of home appliances from the costliest TVs to the lowliest air purifiers, all of which now come with smart, customized chips. 

... “There’s a chip stockpiling arms race,” said Will Bright, co-founder and chief product officer at Drop. 

... While the extent of the damage on consumer electronics remains to be seen, the shortages are expected to cost $61 billion worth of sales in the auto industry."