Chip shortage impacts production in 169 industries; 39 lakh less cars will be made this year | Chip shortage impacts production in 169 industries; 39 lakh cars will be made less this year

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  • Chip Shortage Impacts Production In 169 Industries; 39 Lakh Less Cars Will Be Made This Year

New Delhi7 minutes ago

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Charlie Campbell

At present, the shortage of semiconductor chips is being felt all over the world. According to Goldman Sachs, 169 industries are facing chip shortages. From steel, concrete, air-conditioning, breweries, electronics, auto, many industries are affected. Vehicle production has slowed in the US, Japan, Europe and Asia.

This year the production of 39 lakh cars may be less than last year. On this occasion, the world’s attention is turning to Taiwan Semiconductor Manufacturing Company (TSMC), the largest Taiwanese chip maker. The company holds more than half of the global chip market. It is estimated that the company supplies 90% of modern micro processors.

The importance of semiconductor chips has increased in the last 50 years
TSMC is much more important, says Peter Henbury, a semiconductor expert at consulting firm Bain & Co. The company has almost a monopoly in this modern technology. Semiconductor chips have grown in importance in the last 50 years. In 1969, the lunar module of the Apollo spacecraft sent thousands of transistors weighing 35 kg to the Moon.

Today, 16 billion transistors in Apple’s make-book weigh only one and a half kilos. The use of chips will continue to expand with increasing demand for mobile phones, Internet-connected goods, 5G, 6G telecom networks, and computing. In 2020, more than 33 lakh crores of chips were sold in the world. It is estimated to increase by 5 percent every year.

TSMC dominance becomes headache for all countries
The dominance of TSMC is proving to be a headache for all the countries. The US Defense Department-Pentagon is pressuring President Biden’s administration to invest more money in manufacturing modern chips so that its missiles and fighter planes are not dependent on Taiwan. China has a crooked eye on Taiwan.

President Xi Jinping considers it a separate province of China. He has threatened an attack on Taiwan. Meanwhile, car companies have pointed fingers at TSMC for lack of chips. But the company’s chairman Mark Liu says, “Car companies are our customers. How can we give priority to others instead of them in chips supply.

Chip production affected by drought in Taiwan
The companies first noticed the shortage of semiconductor chips in February. At that time the delivery time for chips orders was reduced to 15 weeks due to various reasons. Amid the economic fallout due to the pandemic, carmakers have cut orders for the chip. Many companies started hoarding chips in anticipation of a US-China trade and technology war.

Drought in Taiwan has also affected chip production due to water shortage. With the deepening of the chip crisis, people’s attention has turned towards access to this technology. The chip was invented by America. He can design these even best but doesn’t mass produce them. Biden plans to increase semiconductor production to Rs 3.76 lakh crore. TSMC was founded in 1987 by Chinese-born engineer Morris Chang, worth Rs 41 lakh crore, the world’s largest chip company. They had kept the prices of the chips low earlier to capture the market. Chang handed over the reins of TSMC to Liu and CEO Sisi Wei in June 2018 at the age of 86. The value of the company is currently more than Rs 41 lakh crore. Apart from TSMC, only South Korean company Samsung manufactures the most advanced 5 nanometer chips.

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