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Inside the Chip Shortage
Photo via Digital Chosun
Photo via Digital Chosun
The shortage of semiconductors that has hamstrung the automotive industry since 2020 isn’t over yet, and Renesas CEO Hidetoshi Shibata (MBA 2001) predicts the shortage will continue well into the middle of 2023, according to an article by Digital Chosun.
Shibata cites the shortage of minor chips that are used in peripherals, not the lack of key semiconductors, as the main issue. “Until now, computing capabilities were only necessary in computers and smartphones, but from now on, computing power will be needed in all daily objects,” Shibata says, adding that demand will continue to grow for applications in cars, robots, manufacturing, and health care. Semiconductors are the tools that make it possible to process data, which makes them foundational to modern technology. Most are manufactured by a small number of companies in a handful of countries, including the United States, Japan, Taiwan, and Korea.
Renesas, which is seen as a leader in the resurgence of Japan’s semiconductor industry, has about 20,000 employees and estimated 1.1 trillion yen in sales in the first three quarters of the year. The company is one of the three biggest chip makers in the world.
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