The shortage of memory chips is leading the global market through a tough time. The level of uncertainty has hit so hard that many device manufacturing companies were put on hold or were forced to change the design to comply with electronic chips that are easier to source. Many of them are affected by the extreme price hike, making it impossible to purchase chips for flash memory, Bluetooth modules, etc. from trusted sellers.
Taiwan is dominant in the foundry market for the electronic chipset that houses many big memory chip and semiconductor manufacturing sites. Recently, Taiwan faced the worst drought in the decade that pushes back the manufacturing of the chips as it requires billions of gallons of water to keep it clean. There were also power blackouts due to human error at the grid which crashed all the systems and affected productivity. Apart from all these, Taiwan faced a surge in local Covid-19 cases and triggered a lockdown. These incidents contributed to the strain in the global supply chain.
The world has been collided by the microchip crisis and TSMC is worried since April that the global nand chip shortage could last until 2022 based on robust demand. Fulfilling the demand requires to increase in the availability of memory chipsets in the market. More details on the news can be found in the reference links below.
Flexxon is a renowned industrial NAND flash manufacturer. We have supported many of our global IMA consumers through many incidents of memory chip shortage crises. So, quickly plan and prepare your stock instead of waiting until the last minute because the supply and pricing might have a different effect. Contact us for more information; we are here to support you amidst the crisis.
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References:
– “Taiwan’s Worst Drought in Decades Deepens Chip Shortage Jitters”, Industry Week; April 20, 2021.
– “Taiwan hit by triple blow of drought, blackouts and COVID surge”, Nikkei Asia; May 25, 2021.
– “Taiwan’s COVID-19 crisis could make global semiconductor shortage even worse”, Chicago Tribune; May 24, 2021.
– “TSMC sees chip shortage lasting into 2022, books solid profit”, Reuters; April 15, 2021.
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