Stiftung Neue Verantwortung: Mainly due to hoarding in China
-Global shortage of semiconductor chips-
Recent research:
From the end of 2020, the supply shortage of semiconductor chips has become serious worldwide.
In addition to the outbreak of Chinese Communist virus (new corona) infection
Chinese companies
Preparing for the US-China high-tech war
Having stockpiled semiconductors
It is said that it affected the balance between supply and demand.
German think tank
New Responsible Foundation (Stiftung Neue Verantwortung)
Report released in late November.
In 2019, the United States implemented an export ban on Chinese telecommunications equipment and Huawei.
Therefore, it was analyzed that “China has started over-ordering chips due to anxiety about the future.”
The Epoch Times
https://www.epochtimes.jp/2021/11/82461.html
Another reason for the increasing demand seems to be the US-China technology rivalry.
One reason
for the quickly increasing demand for chips was COVID-19.Since the second half of 2020,
working from home and home schooling were the new normal in many countries.As many companies lacked
the necessary equipment and in- frastructure to enable work from home, many PCs and laptops were bought.6 With remote work, video calls became the “new normal”; thus, data center and server equipment was in high demand.
Staying at home due to curfews and lock-downs meant that many people invested in gaming consoles and other gadgets.
Another reason
for the increasing demand seems to be the US-China technology rivalry.When the US placed export bans on Huawei in 2019,
some Chinese compa- nies started hoarding chips out of fear of facing similar challenges if being put on the U.S. Entity List.
U.S. export restrictions on Chinese companies can be highly disruptive because of China’s reliance on foreign (US) chips.
Thus, it is understand- able that
Chinese companies started stockpiling chips, but by doing so they contrib- uted to skyrocketing demand.Thus, COVID-19 and hoarding due to geopolitical tensions led to skyrocketing demand for chips.
Global semiconductor sales were
18% higher in 1Q21 than in 1Q20,
29% higher in 2Q21 than in 2Q20 and 28% higher in 3Q21 than in 3Q20.Of course,
this huge increase in sales can be partly explained by the supply constraints that significantly increased prices.However,
forecasts also predict that 21% more semiconductor units are expected to be sold in 2021 than in 2020.All this despite
severe supply constraints throughout the entire value chain.
https://www.stiftung-nv.de/sites/default/files/understanding_the_global_chip_shortages.pdf
China Stockpiles Chips, Chip-Making Machines to Resist U.S.