Tech Companies Are Facing a Global Chip Shortage: 3 Tips for Investors
The semiconductor industry has found itself in a massive supply side shortage situation since the summer of 2020. The industry was already primed for tightness before the COVID-19 pandemic rolled in, due to the long-running trade tension between Beijing and Washington.
When the health crisis arrived, it worsened the situation in two ways. Manufacturers had to deal with the same coronavirus-based operating challenges as everyone else. At the same time, demand for many chip-studded types of electronics surged in the era of working and generally staying at home.
Finally, a terrible drought swept over Taiwan in early 2021, making it difficult for the many chip-building factories on the island to get their hands on large amounts of ultra-clean water.
Source Fool.com