While the shortage of semiconductor chips that began with the pandemic-led changes in demand and supply was continuing, the Russia-Ukraine war aggravated the crisis. Furthermore, the ongoing Taiwan-China tensions could potentially risk semiconductor supplies from Taiwan.
Despite the continued chip shortage, the ever-increasing demand for semiconductors due to their extensive usage in electronics, critical infrastructure, electric vehicles, and other industries has helped the industry benefit from price increases. Furthermore, increasing government and corporate spending to ramp up production should boost the industry’s growth in the coming months.
