Daily Management Review

Microchips shortage enriches chip makers


Revenues for the world's top 10 chipmakers rose at a record high in the first quarter of 2021 amid a global shortage of such products, according to a study by analyst firm TrendForce, cited by CNBC.

Chips are used in everything from toothbrushes to automobiles and many of the world's most important industries depend on them. TrendForce analysts say manufacturers have stepped up to meet soaring demand for a wide range of devices, and the shortages have allowed them to raise prices for their products.

Total quarterly company revenues rose to $22.75 billion. However, approximately 57 percent of revenues came from a single Taiwanese manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC). TrendForce analysts believe the growth of semiconductor manufacturers' revenues will continue with rising prices and continued demand for their products.

The pandemic has sharply increased demand for hardware, including computers needed to move to remote work. The crisis has already impacted major electronics and auto makers, and US companies have asked the authorities for $50 billion in subsidies for research and expansion of semiconductor manufacturing.

International Business Machines (IBM), a leader in software, believes that prices for electronics and cars will rise amid chip shortages until at least 2023.

source: cnbc.com