What are Semiconductors?
To get to the heart of the matter, semiconductors are silicon products that conduct electricity more than an insulator, like glass or wood, but less than a pure conductor, like aluminum or steel. Semiconductors act like tiny electronic switches that perform calculations inside technology products. This sophisticated creation is found in thousands of electronic products, from game consoles and microwaves to data centers powering the Internet.
Lack of semiconductors and the impact of chip shortages
Globally, there has been a recent shortage of semiconductor chips, as factories of automakers have been forced to shut down production amid the spread of COVID-19. As a result, a large chunk of the workforce began working from home, causing demand for devices to explode, and such demand exceeded what manufacturers could supply.
The semiconductor shortage has impacted many industries, especially the automotive industry. This means delayed car delivery orders and a limited supply. Recently, Japanese automakers reported a drop in sales in China as the chip shortage hit vehicle production hard. Honda’s car sales in China in September were down 28% from the previous year, Nissan recorded a 26% drop in September for cars sold in China, and Toyota recorded a 36% drop. The semiconductor shortage has affected many other industries as well, such as the world of smartphones. Apple recently announced that they would likely cut production of its iPhone 13 down to 10 million units due to the global chip drought as chip vendors including Broadcom and Texas Instruments struggle to respond. the overwhelming demand for semiconductor chips.
Lưu Đỗ Hoàng Anh, Financial Analyst Alpho
Licenses and Authorization:
Alpho is a trademark of Gulf Brokers Ltd. a limited liability company regulated as a securities broker by the Seychelles Financial Services Authority of Seychelles (“FSA”) with license number SD013 to carry out certain categories of financial investment activities as permitted by Seychelles Securities Act of 2007.
Trading in leveraged products carries a high level of risk and may not be suitable for all investors. The past performance of an investment is no guarantee of its future performance. Investments, or the income from them, can go down as well as up. You may not necessarily be able to get back the amount you invested. All opinions, news, analysis, pricing or other information contained in our communication and on our website are provided as general market commentary and do not constitute investment advice, or a solicitation or recommendation to buy or sell. sell financial instruments or other financial products or services.