Why Businesses Are Still On A Semiconductor Waiting List

JIASHAN, CHINA – MAY 25: Employees work on the production line of silicon wafer at a factory of … [+] GalaxyCore Inc. on May 25, 2021 in Jiashan County, Jiaxing City, Zhejiang Province of China. (Photo by Guo Junfeng/VCG via Getty Images)

VCG via Getty Images

By Erik Sherman

Everywhere you turn there are computer chips: in greeting cards and cars, farm tractors and shipping trailers, in kitchen appliances and the phones that run apps.

A lot of companies currently are hung up because production of the semiconductors that make them go is at a slowdown. As a result, some factory lines, like those at a few automobile manufacturers, can’t make all the products they usually do because there aren’t enough of the right chips available.

“It’s really the result of a Covid-19 induced demand surge combined with some fairly poor supply chain management” in some industries, says Rory Green, TS Lombard economist for China and North Asia.

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