Access your Pro+ Content below.
Why is it so hard to fix the chip crisis?
This article is part of the Computer Weekly issue of 12 July 2022
Despite commitments from governments and funding to support the semiconductor sector, the ongoing chip crisis is not going away any time soon. The European Commission (EC) has proposed a European Chips Act to encourage the development of a thriving semiconductor sector from research to production and a resilient supply chain, and in the UK, the Foreign Affairs Committee has begun an inquiry assessing skills, security and end-to-end semiconductor supply chain concerns. McKinsey recently forecast that the global semiconductor industry would be worth $1tn by the end of the decade. Its assumption is based on average price increases of about 2% a year, combined with a return to balanced supply and demand after current volatility. However, a recent McKinsey article warned that supply shortages had led to bottlenecks in the production of everything from cars to computers, highlighting how tiny silicon chips are critical to the smooth functioning of the global economy. “In many ways, our world is ‘built’ on semiconductors,” the authors ...
Features in this issue
Computer Weekly has announced the 12th annual UKtech50 – our definitive list of the movers and shakers in the UK tech sector
National Cyber Security Centre CEO Lindy Cameron, the 2022 Computer Weekly UKtech50 Most Influential Person in UK IT, reflects on a career immersed in crisis management, and how she is using this to elevate cyber security standards across the country
Through subsidies and grants, the EU and the UK are focused on building out local chip manufacturing to alleviate semiconductor shortages