Even though supply constraints exacerbated by the Russia-Ukraine war are impacting the global semiconductor industry, the robust demand environment is allowing companies to raise prices for their chips and generate substantial profits. The demand for chips is rising due to the increasing use of advanced technology-based devices amid the continued hybrid working culture. In addition, the growing electrical vehicle (EV) market is also boosting the demand for chips.
While the semiconductor manufacturers are ramping up production with government support to meet the mounting demand, the ongoing chip shortage may not end soon. With the growing applicability of chips in the tech era, defined by the Internet of Things (IoT), Artificial intelligence (AI), 5G network, and cloud computing, the demand for chips should keep rising. According to Research and Markets, the global semiconductor market is expected to grow at a CAGR of over 6% by 2026.
