Pandemic Supply Chain Issues Semiconductors

Automobiles and electronics have been adversely affected by the COVID-19 pandemic and the subsequent semiconductor shortage. A previous paper from AIR touched on the economic ramifications from the Covid-19 pandemic as a stark reminder of the importance in understanding complex vulnerabilities in today’s interconnected world.

The beginning of the pandemic lockdown in 2020 led to a sudden drop in manufacturing due to hastily canceled orders and just-in-time practices. However, demand for silicon chips rose due to pandemic working conditions as consumers increased their use of laptop computers, 5G phones, gaming systems, and other IT equipment. By Q3 2020, demand for semiconductors had surged, creating a V-shaped recovery for personal computers, mobile devices, automobiles, and wireless communications.


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