Improvements to Asia’s Chip Manufacturing Market

Spurred by COVID-19, the increased demand for electronics led to the current chip shortage. In addition, a wave of digital transformations by businesses strained the market. As a result, the shortage has caused issues for a range of industries, from automotive to consumer electronics. In May, chip sales were up approximately 26% compared to the prior year, but the supply wasn’t available. Production delays due to the coronavirus stymied the major global producers of chips, Taiwan, China and South Korea.

However, government and industry are addressing the problem. Over the next three years, Taiwanese semiconductor giant TSMC will invest $100 billion to increase production capacity. By 2025, the Chinese government plans to spend as much as $200 billion to address the semiconductor shortage.