Now China’s move to cut silicon production is disrupting the global economy, World News

Authorities in Yunnan Province of China last month announced that the average monthly output of local silicon companies should not exceed 10% of August output from September to December, affecting several industries related to the product. .

The decision was announced by authorities due to an electricity shortage in China. Reports say silicon production is expected to be 52% lower this year due to lower production.

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The semiconductor shortage has already hit the global supply chain amid the alarming pandemic of automakers.

The closure of factories due to the pandemic, however, created a huge shortage of semiconductors, as vaccination resumed around the world this year and economies opened. Producers of electronics have started placing orders, but supply has not kept up with ever-growing demand amid disruptions in various parts of the world due to lockdowns as the virus continued to hit industrial centers around the world. whole world.

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The semiconductor shortage has not only hit automakers but also Apple’s iPhone, including the PlayStation 5 and Xbox Series X. This, now coupled with the silicon shortage, is likely to tighten up. more the market.

Solar energy companies are already feeling the heat as they wait for production to ramp up again. Reports say the shortages are expected to spread through 2022, even as governments around the world try to increase chip manufacturing capacity.

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South Korea, the United States and the EU have attempted to increase semiconductor production, however, the process of increasing production to acceptable levels will likely take longer than expected.

(With contributions from the Agencies)

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