The impact of the global shortage of semiconductors is expected to ease in the second half (H2). We are in the worst period now on the impact on downstream industries like electronics and autos will gradually ease in H2, according to chief Asia economist at Goldman Sachs.
Semiconductor supply chains of Asia in Taiwan, Japan, and South Korea have witnessed “significant tightening” and delays in deliveries impacting downstream industries, especially automobiles. Since December 2020, there is a shortage of semiconductors globally, with suppliers from Asia overwhelmed by increased demand for chips from the healthcare and 5G sectors.
Supply chains in Taiwan are especially challenged by a drought situation and another wave of COVID-19 infections, which could significantly lower production. The problem of water shortage may lower production at chip major TSMC.
On the other hand, Brazil’s auto association Anfavea warned of chip shortages impacting Brazilian auto production up until the first few months of 2022.