The Wearables Sector’s Pandemic-Fueled Growth Provides a Barrier against the Global Chip Shortage

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By Filomena Iovino | 4Q 2021 | IN-6303


Is a Global Chip Shortage a Short-Run Problem?


The on-going chip shortage has reduced the availability of electronic devices on the market, pushing demand higher, which has, therefore, led to higher prices. Even though big tech companies such as Apple and Samsung have felt the pressure from production delays, the response from most companies and institutions has been prompt enabling them to cope with supply chain disruption. Despite these circumstances, the wearables sector is projected to grow in the foreseeable future, and human-centric technologies will be adopted as a winning strategy in the high-tech world.

Supply chain disruption caused by the current pandemic, combined with the ongoing geopolitical tensions between the United States and China, has resulted in a global semiconductor shortage. Currently, chipsets in circulation are made from silicon wafers that generally have a diameter of 150-mm, 200-mm or 300-mm. The declining price of the silicon wafer during recent years, has discouraged manufacturers from investing in new capacity. Therefore, due to the absence of economies of scale and the difficulty of …

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