Semiconductors (microchips) are an essential part of any electronic device.
Although chips themselves are tough, designed to withstand all external shocks, the global semiconductor supply chain proved itself vulnerable to various disasters.

Carmakers had to shut down production lines for a while at the beginning of pandemic.
They cancelled orders for chips used in automotive electronics systems like driver assistance and navigation control, anticipating an industry slowdown that would last several months.

For the rest of 2020, chip foundries reassigned surplus manufacturing resources to companies that make smartphones, tablets, and gaming consoles, which saw an increase in demand after the pandemic lockdowns.

As auto sales rebounded earlier than anticipated in the third quarter of last year, chip factories were unable to respond quickly enough due to the lengthy lead times needed to prepare orders.

The shortage of semiconductors soon spread to other markets, such as consumer electronics and home appliances, which saw a surge in revenue due to the pandemic’s “stay at home” effect, but were unable to satisfy the increased demand due to a lack of sufficient supplies.

The shortage of integrated circuits isn’t supposed to go away anytime soon.
According to experts, it could take another two years for the supply-demand balance to be recovered.