Covid-19
Just as it has with most industries around the world, Covid-19 has played a major part in the disruption that the electronics industry is enduring. The pandemic has caused falls and surges in demand that have impacted production levels and made the market unstable.
The fast growth of new technologies
The pandemic isn’t the only factor that is causing the semiconductor shortage. The fast growth of new technologies means that demand is outstripping supply for universal components such as semiconductors and MLCCs.
US-China Trade War
Further compounding these issues is the ongoing trade war between the US and China. When Huawei was blacklisted in the US, several US-based microchip producers were forced to cease trading with the Chinese tech giants, resulting in financial difficulties for both parties.