TECH REPUBLIC – Industry experts are projecting that the global microchip shortage – which has been hampering supply chains in several industries – will not improve before 2023. Last year, experts projected that there would be some relief in the second half of 2022.
The semiconductor shortage first hit the automotive industry during the COVID-19 pandemic in 2020, when overall consumer demand for cars declined during the lockdown. This had a cascading effect that led to “labor shortages, lack of raw materials, trade tensions and the growth of 5G electronics, which require more chips than previous generations of devices,’’ according to an article in the MIT Sloan School of Management.