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Causes and consequences of the global semiconductor shortage

Risk and resilience21 January 2022

This episode examines the worldwide shortage of semiconductors, which has disrupted supply chains for well over a year and shows little sign of ending soon. It draws on a detailed research paper written after months of study.

The discussion covers the root causes, noting that this is not the first time the industry has faced a shortage, and the way it has affected businesses that depend on chips, from household appliances to vehicles. The paper frames its advice around three aims: keeping customer relationships on track, maintaining revenue, and putting better processes in place so that any future shortage causes less disruption.

Key points

  • Underlying causes of the chip shortage and earlier historical shortages
  • Effects on manufacturers and the products people buy
  • Strategies to protect customers, revenue and future resilience

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