The Russian-Ukraine conflict has exacerbated the pandemic-induced global semiconductor chip shortage. U.S. auto sales in March declined by 4.6% from February, owing to chip scarcity. The semiconductor industry is facing overwhelming demand for chips from rapidly digitizing industries.
Furthermore, chipmakers continue to ramp up production to meet the pent-up demand, supported by government and corporate investments. According to the Semiconductor Industry Association, global chip sales are projected to grow by 8.8% in 2022. And the recently passed Chips Act is also predicted to drive the U.S. semiconductor industry’s growth.
