Microchips, also known as semiconductors, have become an essential part of everyday technology, and are utilized in almost every electronic device, from smartphones to computers and medical equipment.
In 2020, more than 932 billion chips were manufactured around the world, while in 2021, roughly 1.15 trillion semiconductor units were shipped across the globe.
However, increased demand for microchips, shortages, and supply-chain issues—kickstarted by the COVID-19 pandemic—have led to a global chip shortage that has severely affected manufacturers.
The auto industry was dealt a particularly strong blow, with some carmakers forced to cut production and in some cases reduce safety features on vehicles.
As a result of the ongoing shortage, most analysts expect the supply of semiconductors to remain constrained well into 2023, although some, including German automaker Volkswagen, believe it could last longer….