An unexpected global semiconductor shortage is spelling trouble on companies across the
world... affecting the manufacturing process of a wide range products.... from automobiles,
computers to microwaves.
Analysts warn that the chip shortage, likely to continue throughout the year, could result
in over 60 million dollar loss in auto industry alone.
Why are we seeing a global chip shortage and when will it be resolved?
Joining us live from Washington D.C. is Shihoko Goto, Deputy Director for Geoeconomics and
Senior Associate for Northeast Asia at the Wilson Center’s Asia Program.
I want to first ask you, what's causing the unprecedented global chip shortage?
Inaccurate projection of semiconductor demand is one of the reasons behind the global shortage.
The demand was much larger than expected.
Why are we seeing a surge in demand, and how did the Covid-19 pandemic affect the demand
patterns?
(If not mentioned at #1) Some experts say U.S. sanctions on Chinese semiconductor chips
have rattled the global supply network triggering the unusual shortage.
Your thoughts on this?
Many big-name automakers have been forced to shut down their factories due to a critical
shortage in automotive chips.
Hyundai Motor Company also announced it's shutting down one of its plants for one week.
Why is the automobile sector the hardest-hit?
There are movements in US, Europe, and China to reshore the chips and decrease global dependency.
How do you see this, and how would it reshape the global semiconductor market?
In
your perspective, how
long would the crisis last, and what are some viable solutions to resolve
the shorfalls?
Shihoko Goto at the Wilson Center’s Asia Program for us tonight, thank you.