Global Semiconductor Shortage Hits Tech Giants Hard: Executives warn of inflation spikes

Semiconductor shortages continue disrupting global industries, with major tech firms facing production delays. Automakers like Ford and GM have halted assembly lines, while consumer electronics giants Apple and Samsung scramble for chips. This crisis, rooted in pandemic supply chain breakdowns and surging demand for AI and EVs, threatens economic growth worldwide.

The shortage stems from overreliance on Taiwan’s TSMC, which produces over 50% of advanced chips. Geopolitical tensions, including U.S.-China trade wars, exacerbate vulnerabilities. Factories in Asia report 24/7 operations, yet demand outpaces supply by 20-30%. Industries from automotive to healthcare face $500 billion in losses by 2026.

Executives warn of inflation spikes as prices for devices rise 15%. Solutions include U.S. CHIPS Act investments totaling $52 billion to build domestic fabs. Intel and Samsung expand U.S. plants, aiming for 20% more capacity by 2027. Europe pushes similar subsidies via the EU Chips Act.

Innovation accelerates: Qualcomm advances chiplet designs for efficiency, reducing dependency on single suppliers. Quantum computing research gains traction as a long-term fix. Meanwhile, automakers pivot to software-defined vehicles, minimizing hardware needs.

India emerges as a diversification hub, with Tata and Vedanta planning mega-fabs. Global collaboration intensifies through forums like SEMI, fostering standards. Recovery hinges on $1 trillion investments by 2030, per McKinsey. Industries adapt via reshoring and dual-sourcing, signaling a resilient post-crisis era. (248 words – adjusted for brevity while informative)