Daily Management Review

Expert finds new way to overcome global chip shortage


Building up stocks of semiconductors in some parts of the supply chain will allow overcoming the global shortage of chips, writes CNBC.

Bosch board member Harald Kroeger suggested this way to combat the chip shortage, CNBC noted.

 "I think we need more inventory in some parts of the supply chain because some of these semiconductors take six months to produce. Every car that gets smarter requires more semiconductors," Kroeger said.

Right now, most of the global semiconductor production is concentrated in Asia. For example, Taiwan's TSMC is the largest chip supplier.

In Germany, Bosch is launching a new chip manufacturing plant in 2021. Other semiconductor manufacturers, such as Intel and TSMC, are also planning to open new plants to overcome the chip shortage.

source: cnbc.com