The current pandemic has caused a global chip shortage. This major concern of chip shortage has been addressed by the EU-US technology association reportedly. Some talks between European commissioner Margrethe Vestager and US President Joe Biden have been disclosed by (TTC ) The Trade and Technology Council.
The group will be seeking common standards for Artificial intelligence and other new technologies like it. The two sides are very concerned by China rising as one of the new technology superpowers.
“An EU-US partnership on the rebalancing of global supply chains in semiconductors”. This was the agreement made on the negotiation.
Pandemic and global chip shortage
The Covid-19 pandemic has led the way to global chip shortages. And this has shown us that the deficiency of our supply chains. This shortage has caused a lack of consumer electronics.
This is also slowing down the manufacturing of cars and gaming consoles. The United States has invested $52 billion in domestic chip manufacturing.
Europe is also wanting to increase its share in the global chip-manufacturing market from 10% to 20%. EU has also guaranteed to invest $150 towards the deed. The United States has devoted $52 billion to global chip manufacturing.
Global chip shortage could last till 2023
Semiconductors will be in short supply in the future time, according to analysts who are monitoring the industry. A vice president research director at advisory firm Forrester, Glenn O’Donnell, suspect the chip shortage might potentially last till 2023.
The reason for his suspicion is that chips are something in everything today. These are used in PlayStations, toothbrushes, ACs, refrigerators, alarm clocks, and many more.
To provide such a huge amount of chips, we need a lot of things however we don’t have enough stuff to go around. It’s a multifaceted issue that is showing no results of getting less intense, some call the current crisis “chipageddon”.
“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” Glenn O’Donnell wrote in a blog.
He anticipates demand from PCs, which have some of the most advanced chips, to “soften a bit” in the coming year but “not a lot.”
O’Donnell states: “Couple that with the unstoppable desire to instrument everything, along with continued growth in cloud computing and cryptocurrency mining, and we see nothing but boom times ahead for chip demand”
“It’s not just autos, It’s phones, It’s the internet of everything. There are so many goods now that have many more chips than they ever did in the past” this is what the CIO of Plurimi Investment Managers, Patrick Armstrong, told CNBC.