Tech

The Semiconductor Shortage Will End Soon

Semiconductors, or to be more exact the scarcity of them, have brought head both the technology sector and others dependent, to a greater or lesser extent, on it. The supply chain, a key element but that until now was practically unknown to the general public, it has been the protagonist of many headlines and news, in which it was directly related to the limited production and shortage of all kinds of products, from video consoles to cars.

During the last two years, in which we have intensely experienced this shortage, the forecasts about when it would end have been varying very sharply, although in general they have almost always pointed to the medium or even the long term. And it is understandable, since the start-up of new production infrastructures was necessary for the supply chain to be able to satisfy the enormous existing demand.

Many reasonably recent forecasts suggested that this situation would last until at least the very end of 2023 or the beginning of 2024, a very bleak outlook. However, as we can read on VentureBeat, the end of this vicissitude could be closer than analysts predictedsomething that is influenced by both the production market and the demand rates for, of course, the products that require these components.

The Semiconductor Shortage Will End Soon

On the first point, that of production, over the months progress has been made in the commissioning of new factories, and the sector awaits the approval of a new law in the United States that will result in economic aid for the start-up of new factories. Some companies, such as Intel, are waiting for said legal step to start the construction of these new production centers. And this only in the United States, there are projects for new factories already underway around the world.

On the other hand, rising global inflation and growing economic uncertainty are acting as a drag on consumption, and the sectors most affected by shortages in the semiconductor supply chain may be greatly affected by a drop in demand. This decrease, however, would alleviate said levels of demand, would allow supply to be better adjusted to demand, and would give a margin of time so that all the factories that today are just a project are already fully operational.

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