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.