The reasons for the global shortage of components

The reasons for the global shortage of components

The pandemic has triggered a global supply crisis, causing production difficulties for manufacturers and product shortages for consumers. The electronics and automotive sectors are particularly affected.

If Tesla and Apple have been able to pass between the drops, they are the only two companies that have not had to suffer too much from the current shortage of electronic components, which is accompanied by strong friction in logistics. To find solutions to these problems, we must first go back to the source, as the American Department of Commerce did in a study pointing out three main difficulties.

The pandemic seizes the world system

The first is that the auto industry has started to buy more and more semiconductors: automakers are under pressure to develop and produce electric vehicles that are more computers on wheels than cars in the classic sense of the term. Demand is therefore on the rise, but not only in the automotive sector, this is also the case of course in the technology sector.

Second problem: one of the effects of the pandemic has been that consumers confined to their homes have increased their purchases of electronic products, thus contributing to a very significant increase in demand. Computers, tablets, game consoles have been very popular in 2020, and it hasn’t calmed down so much. The epidemic is still very present and calls for telework force many people to equip themselves.

Finally, the third difficulty: this consumer demand logically leads to a significant increase in orders for processors, the majority of components produced in Southeast Asia. An area of ​​the world where the Covid-19 has caused many intermittent closures of production lines. The stock-out is near, in a context of overheated consumption.

The report, which gives voice to industry players, also explains that the shortage of components is not going to disappear any time soon, it is even likely that we will still have to live with it all year round.

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