There’s Apparently a Positive Thing About the Global Chip Shortage Too

Carmakers suspend their production waiting for chips 1 photo
Photo: Daimler
The global chip shortage is a nightmare that won’t come to an end too soon, or at least, that’s what so many tech experts keep saying these days, despite all the efforts of everyone involved in the industry to deal with the whole thing.
Pretty much everybody is affected, from tech companies to automotive manufacturers, and it’s all because the demand for chips is so high that foundries across the world can’t build enough semiconductors to be installed on the products others build.

The chip shortage had a major impact on carmakers, with several of them turning to temporary halts of their operations, waiting for suppliers to build more chips for specific models.

But as it turns out, there’s actually an upside to this whole struggle. And the CEO of Arm, the U.K-based company that doesn’t build processors but only designs chip cores eventually used in millions of devices, knows exactly what it is.

In an interview this week, Simon Segars explains that the huge interest chips are getting these days could eventually convince more companies to invest in this industry, therefore helping the market as a whole evolve and making sure another shortage would never occur.

Indeed, the semiconductor market has barely attracted new players lately, with the same companies still serving most of the markets these days.

The good news is several giants have already confirmed plans to begin manufacturing chips, including Intel and Samsung. The latter will work together with Hyundai as part of a domestic partnership that should help deal with the shortage in the short term, while Intel is now busy setting up production lines expected to be up and running in less than nine months.

Most likely, other companies would join the party rather sooner than later, though others don’t expect the global shortage to ease up earlier than the first half of 2022. Foxconn, which is right now the top iPhone maker and one of the companies expanding to the automotive market, says the lack of semiconductors is very likely to continue into the next year.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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