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Top Analyst Says The Supply Chain Issues For Global Chip Production Are Far From Over

The world has been facing plenty of issues related to the supply chain and that has impacted the production of global chips too.

The conflict between Russia and Ukraine has been ongoing and so are the problems related to a shortage crisis where supply fails to meet the demand for semiconductors. These are an integral component of so many products related to the tech industry.

This is why a leading tech analyst recently spoke to CNBC for an interview, highlighting how the issues for global chip manufacturing are far from over. So many important elements are yet to make their way into countries due to strained supply relations.

So we can all expect that the supply of materials like semiconductors can’t magically increase. They are going to take time because the raw elements needed such as gases and more aren’t present. And by the time they are imported into countries, it’s going to take a while for supply to resume back to normal.

A lot of emphasis keeps on going back to the Russian and Ukrainian conflict because these nations hold such a huge part of today’s share in the market. Both countries are labeled to be the biggest exporters of a noble gas called krypton, whose use is unlimited and very important in today’s chip industry.

In addition to that, neon is another quintessential element to make chips and is vital for laser products as well. Hence, it wouldn’t be wrong to call this lithography process where tiny holes get embedded into silicon chips, near impossible without the supply resuming back to normal.

A number of companies make use of lithography in the tech industry like Samsung, TSMC, and even Intel.

Remember, there are a bunch of companies out there in Ukraine who are responsible for producing 50% of the world’s neon supply. And these facts are confirmed by top semiconductor analysts too.

In case you happen to be wondering where semiconductors are utilized, well, the answer is pretty simple. They can be found in all sorts of places and devices like computers, cellphones, and even automobiles. So that just goes to show their significance.

When there’s a shortage of raw materials, the prices also surge and that means the average costs related to tech devices just shoot up to new highs. And in turn, it’s the customer who has to suffer in the end.

As it is, top market analysts fear that rising costs of inflation with stringent monetary tightening have led to an intense slowdown in the economy. And people who once spent millions on IT are not willing to do the same, keeping in mind the economic uncertainty.

The sudden price hike has caused firms to secure their IT budgets with strongholds as you never know what the future holds.

It’s going to bite all of us out there but there is some hope that top governments with associated banks would try to bring a balance between current interest rates and the sudden price hikes.

So far, there is news that the Federal Reserve would soon be delivering a sharp rise in the rates of interest to try and combat inflation. This could be seen as early as this month or even could be delayed to September, depending on how conditions are laid out.

In places like Asia, governments have decided to slow down on the hiring process and instead focus on less spending to meet year-end targets. So many leading tech firms are feeling the pressure because there’s a clear gap between rising salary costs and those related to skills on offer.


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