The current crisis in the semiconductor industry has forced manufacturers to redouble their activity to meet at least part of the huge demand that is being felt. Therefore, a new record in chip production has been set in the world!
With demand much higher than supply, various sectors of production and economic activity suffer from a shortage of components, something that has not gone unnoticed by any of the parties involved. On the contrary, production has also increased.
Never before have so many chips been produced as in June 2021
Among the largest producers in the world is the Taiwanese TSMC. In fact, the company increased the production volume of chips and semiconductors for the automotive industry by 30% during the first half of 2021 compared to the first half of 2020.
The growth in production, still unable to respond to demand, led to an increase in the manufacturers’ income. In fact, the world’s top 9 chipmakers have raised more than $ 64.7 billion, or more than € 55 billion, in revenue from the sale of finished components during the first six months of 2021.
These are the conclusions that the publication advances. Nikkei Asian Review. The publication cites the joint effort of the largest manufacturers in this segment led by Samsung, an entity that recently surpassed Intel in the production of chips.
In June 2021 the peak in chip production was reached
Based on statistics provided by TSMC, Intel, Samsung Electronics, Micron Technology, SK hynix, Western Digital, Texas Instruments, Infineon Technologies, and STMicroelectronics, the report gives us an overview of production.
In fact, all the companies increased their infrastructure and strengthened the production chain. All, without exception, registered an increase in the volume of chips and semiconductors produced, increasing the volume to reach the market.
In this way they managed to increase the stock of available components by 24% until the end of the last month of March. It was a concerted effort to respond to demand, although it continues to exceed available supply.
Demand continues to exceed supply for chips and semiconductors in 2021
A trend that should extend until 2022, causing delays in the production chain of the most varied industries. Currently, according to the data provided, the rate of production and inventory accumulation is well behind the rate of sales.
In other words, manufacturers cannot accumulate stocks of chips and semiconductors at the same rate that other companies search and buy them. In practice, demand continues to outpace supply, something that should continue in 2022.
Among the most affected industries is the automotive industry, which has been forced to reduce its production rate. However, the smartphone and mobile device industry was also forced to take steps to overcome this hurdle.
Finally, the chipmakers themselves have complained about the backlog of orders, some of which have been repeated. This shows the sense of urgency of the orders, as well as the inability to respond to the required volume.
Ultimately, there is currently no solution and an end is in sight for the shortage of components, not even with new production records.