What causes semiconductor shortages?

For professionals in the semiconductor industry, shortages (often referred to as allocation) are not new; they are cyclical in nature. Shortages can be caused by natural disasters, variations in the supply of semiconductor material, changing economic conditions, or other geographic and political events.

What do decision-makers need to know about the semiconductor crisis?

Here’s what decision-makers need to know. "The semiconductor crisis created an urgent mandate for every company to structurally rethink risk mitigation (not only) in their semiconductor supply chains." For some industries, the ongoing semiconductor shortage shows no signs of stopping.

What is the biggest challenge for the semiconductor industry?

Meanwhile, the biggest challenge for semiconductor makers, distributors, and equipment suppliers will likely be avoiding the boom-and-bust cycle for which the industry is known. Historically, every shortage has been followed by a period of oversupply, resulting in falling prices, revenues, and profits.

Why are today's semiconductor buyers walking a tightrope?

This forces today’s semiconductor buyers to walk a tightrope: weathering an inventory correction and ongoing supply bottlenecks at the same time. Excess inventory which semiconductor companies, EMS providers, and some Tier-1 companies recently built up to safeguard production, however, will likely become an issue.