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How the current chip crisis could reshape the industry’s global landscape

A semiconductor is on display at the booth of Shanghai ChipON Micro-Electronic co. ltd. on April 14, 2021 in Shanghai, China.

Synopsis

Besides the demand-supply mismatch, the shortage reflects the effect of political uncertainties on business confidence and strategic decision-making, experts say. Production capacity will become the top priority of chip companies, limiting their push for innovation and hurting startups with outstanding design capacity. The industry expects a major revamp soon, which may lead to the failure of many small companies.

Han WeiA chip shortage that has squeezed global automakers since late last year offered a snapshot of how the Covid-19 pandemic and geopolitical uncertainties have distorted supply chains in the highly globalized semiconductor industry. The question is: Will it lead to a reshaping of the industry’s global landscape?It’s a multibillion-dollar question involving massive investment flows and potentially sweeping economic and geopolitical

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