Strategy Analytics: Semiconductor Shortages Fuel Nations’ Race to Self-Sufficiency | Financial Buzz

Strategy Analytics: Semiconductor Shortages Fuel Nations’ Race to Self-Sufficiency

According to the latest research from Strategy Analytics, the semiconductor shortage has triggered a new wave of massive investments by countries in a bid to achieve self-sufficiency.

A confluence of factors including earlier than anticipated demand recovery in segments such as automotive, pandemic-driven demand, a lack of enough foundry capacity investments, stockpiling, double-ordering and natural disasters all precipitated a semiconductor shortage that has driven many countries into a massive investment race to secure their supplies, as discussed in the Strategy Analytics’ report “Semiconductor Shortage Spurs Global and National Investment Plans“.

Christopher Taylor, author of the report and Director of the RF & Wireless Components service, commented, “Semiconductor shortage has pushed nations including the U.S., China, Europe, Taiwan and S. Korea to provide government incentives and direct investment in semiconductors manufacturing. Semiconductors play a critical role in consumer electronics, communications, aerospace and defense systems, automobiles, financial services, and the manufacturing and delivery of just about everything. It is in each country’s interest to foster its own semiconductor ecosystem to secure supplies against unanticipated disruptions in trade. Strategy Analytics also urges the governments of China and the U.S. in particular to engage in good-faith negotiations to resolve differences and minimize disruption to the global semiconductor supply chain.

Sravan Kundojjala, co-author of the report and Associate Director of the Handset Component Technologies service, added, “While it is important to address the lack of geographic diversity in semiconductor manufacturing, nations must rationalize their investments to cater to domestic semiconductor industry needs. Strategy Analytics makes some specific recommendations in the report, but in general, nations need to figure out how best to target government investment and incentives in semiconductors in terms of cost-effective and realistic outcomes rather than going for unrealistic goals.”

About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

For more information about Strategy Analytics

Service Name: RF and Wireless Component Service

Service Name: Handset Component Technologies

Contacts

European Contact: Stephen Entwistle, +44 (0)1908 423 636, sentiwstle@strategyanalytics.com

US Contact: Christopher Taylor, +1 617 614 0706, ctaylor@strategyanalytics.com

Asia Contact: Sravan Kundojjala, +44(0) 1908 423 638, skundojjala@strategyanalytics.com

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