Semiconductor Shortages and Impact on Manufacturing

Russia and Ukraine lead the global production of metals such as nickel, copper, and iron and are largely involved in the export and manufacturing of essential raw materials that are required for semiconductor production. With the war ongoing and manufacturers increasing chip production, there is a chip shortage that is expected to last through 2023. Leading chip manufacturers have announced semiconductor price hikes to cover rising material and logistics costs due to the COVID-19 resurgence and the ongoing Russia and Ukraine war. At the same time, Taiwan is set to expand its role in semiconductor production with six new plants expected to be built in the country, raising its foundry capacity, and thereby increasing its market share in the global chipmaking market.