China’s Trillion Dollar Takeover
President Xi Jinping recently surprised the technology world by announcing a plethora of regulations to shake up the technology industry pretty much preventing them from expanding, however though China uses more semiconductors in their manufacturing than any other country they are heavily reliant on the likes of the US for these all important microchips.
Currently of the top 15 semiconductor companies 8 are based in the US, 2 in Europe and the remaining between South Korea, Japan and Taiwan. And it is Taiwan that China has its eyes set upon. Just like the terrible invasion and take over of Hong Kong last year a more aggressive military approach is being planned for a take over of Taiwan and therefore their semiconductor industry which will propel China’s position in the semiconductor world, ensuring that over 70% of China’s manufacturing is carried out at home. The majority of the remaining 30% of China’s manufacturing is carried out by Chinese owned companies in countries like Africa and India to keep costs and prices down.
Mexico Want A Piece Of The Pie
Mexico’s economic minister Tatiana Clouthier was in talks yesterday (Thursday 9th September) with US officials about semiconductor production in the region. Though this would be an incredible opportunity for Mexico to grow its economy and cement its future in the technology arena, it will take many years and an awful lot of money to fulfil.
Though a date has yet to be set a meeting with US President Joe Biden and Mexican President Andres Manuel Lopez Obrador is on the cards and semiconductors are at the to[p of the agenda above the “remain in Mexico” policy formally known as the MMP (Migrant Protection Protocols) program.
More Power Leads To Burnouts
One of the biggest issues with the advancements in technology and software has been the challenge of producing semiconductors that can withstand such abuse from fast processing and excessive heat. Much research has been done and many different types of cooling systems have been created and used successfully but they are not the long term answer.
Typically the best performing semiconductors can withstand temperatures of up to 500 degrees Celsius, which sounds a hell of a lot, but surprisingly processing at high speeds can easily exceed these temperatures.
Now Osaka City University has discovered a high temperature fabrication made from gallium nitride that can withstand temperatures of up to 1000 degrees Celsius. Though this is still early in its testing days it certainly looks like a promising application which will increase semiconductor life cycle.
Should you be doing anything to protect yourself and your business?
In short yes, the semiconductor/microchip shortage isn’t going to change any time soon and is likely to continue for a few more years. It has already plagued many industries and the longer term knock on effects will be extremely damaging if you are not prepared.
If you and your business are heavily reliant on computers, servers and any electronic devices then you will want to ensure you have a backup plan for any eventualities.
A proactive instead of a reactive plan of action is highly advantageous. If you do not know where to start then give us a call on 01737 824 003 or email us at support@tlptech.co.uk where one of our team will be happy to assist.
Alternatively take a look through the individual tailored services we offer from the selection below.
Making Money From A Crisis
You don’t have to dig too far into the financial and industry pages to learn that many manufacturers have taken a bit of a hit recently due to the semiconductor crisis, simply because they have fewer products to sell, however though the main manufactures have taken a hit others within the supply chain are reaping the benefits, raw material manufacturers and miners are seeing a surge in stock and share prices due to the growing demand in raw the materials.
If you want a stock that has the potential to rise in price like cryptocurrency then now might be a great opportunity to invest, however just like cryptocurrencies markets can be extremely volatile and though the semiconductor crisis is far from over it just takes a sudden change in moods for prices to come tumbling down again.
Auto Industry Is Running Out Of Gas
If you have been looking for a new or used car recently you would have noted that prices have increased by approximately 10% across the board, while trying to get your hands on a new car is seemingly challenging at best and waiting lists are getting longer all due to the crisis.
Ford for the first time in its history took over a year and a half to deliver its first Bronco SUV with orders slowly trickling through to their now angry customers, Toyota just announced it will be cutting back its workforce by some 4000 employees and has had to scale back production by some 300,000 units, and many others within the automotive industry are following suit in what can only be described as a disaster for an industry heavily reliant on a multitude of different semiconductors.
Bringing It Back To Europe
Many moons ago Europe was a leading force in semiconductors, though Europe has 2 of the world’s largest semiconductor manufacturers there used to be many more and Germany’s economy minister Peter Altmaier wishes to bring semiconductor manufacturing back to Europe.
Peter said: “Access to sufficient microchips will become a competitive element for any successful global economy in the coming years,” “This means we must act if we want to preserve our technological sovereignty,”
The German government who is onboard with the plan intends to inject around €3 billion into reclaiming the original semiconductor production sites across Europe and Intel have said they would also be willing to invest billions into these sites.
