Strategy Analytics: Semiconductor Shortages Fuel Nations' Race to Self-Sufficiency
May 19 2021 - 6:47AM
Business Wire
Massive Investment Plans to Drive Semiconductor
Growth
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
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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.
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Service Name: RF and Wireless Component Service Service Name:
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version on businesswire.com: https://www.businesswire.com/news/home/20210519005096/en/
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