No end in sight
Why the semiconductor shortage may last for two more years
The world economy is suffering from a global shortage of one of its most important products. Semiconductors are the cornerstone of nearly all industries worldwide. The short supply of semiconductors has led to severe supply chain disruptions, with consumers waiting for months to receive their products. Managers outside the semiconductor industry appear to be helpless in the presence of this crisis, and Europe’s manufacturing industry is severely affected.
Many industry experts predicted an end of the current crisis by December 2022. Looking at the latest news from the most affected industries, the high hopes of a foreseeable end will most likely be dashed. Although some industries are expected to regain control over their semiconductor supply, we do not expect the over-all shortage to be resolved within the next few months.
Building upon Horváth’s industry expertise, we expect the global supply of semiconductors to catch up with global demand during the first quarter of 2024. However, until 2024 there is a rocky road ahead for the semiconductor industry.
In this white paper, we analyze and quantify the major characteristics of the semiconductor industry that led to the current supply crisis.