It seems like at every turn, the effects of the semiconductor shortage can be seen.  An earlier Collar Stocks post touched upon how semiconductor supply chains are no longer ‘Fit For Purpose’ in the automotive industry.  It’s not just about the manufacture of cars- the chip shortage affects about any tech-related product.  In one way or another, semiconductor technology is imbued into many of the products used today.  A post earlier this week by Brian Kasal in The Leadership Matrix highlighted a major challenge facing the chip industry- it is difficult to even find the machines that make semiconductors.

While demand continues to increase with an ever-growing appetite for semiconductor capacity in a greater array of products, it takes years for new fabs- the fabrication plants that produce the chips- to be built and start production.  The story below gives a deep-dive into the complexities involved with meeting surging chip demand from different industries with differing requirements.  It even explains how the lead time of some base substrate materials used in the manufacture of chips has increased from 2-4 weeks to as long as 16-20 weeks.

Supply will eventually catch up with demand, but boy is there a tangle to get through in the semiconductor supply chain!

Read more about the issues in the semiconductor industry here- End In Sight For Chip Shortages?

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