Summary
Between 2020 and 2023, the world experienced a severe semiconductor shortage that affected over 160 industries. Disruptions from the pandemic (factory shutdowns, labour shortages), combined with surging demand for electronics and automotive chips, created a “perfect storm”. :contentReference[oaicite:8]{index=8}
Systemic Features
- Highly concentrated supply-chain node (chip fabrication in few geographies) → global ripple when disrupted.
- Tight coupling between industries (automotive, consumer electronics, industrial hardware) and dependence on timely chip supply.
- Lack of buffer capacity and redundancy; just-in-time manufacturing left no slack for shocks.
- Compound triggers: pandemic impacts + surge demand + logistic & supply interruptions.
Cascading Systems Affected
- Automotive manufacturing & supply chains
- Consumer electronics & IT hardware industries
- Global manufacturing, trade flows, pricing
- Logistics, component sourcing, global trade networks
Impacts
- Production delays or halts across auto manufacturers, electronics, appliances — leading to shortages, price increases, delayed product launches.
- Inflationary pressures on electronics & manufacturing goods; slowdown in industrial output in many regions. :contentReference[oaicite:9]{index=9}
- Increased attention to supply-chain resilience, diversification, reshoring and stockpiling in global manufacturing strategies.
- Exposed structural vulnerability in global supply-chain architecture — a systemic risk not previously fully appreciated at this scale.