Semiconductor Market Shows Diversity Amid Pandemic Shortages

At DesignCon 2021, the chip shortage was on the minds of many.

And while observers of the semiconductor market say that the chip shortage has created a challenge for industries like autos , PC and smartphone makers and even robotics, others say the picture isn’t uniform.

But Paul Pickering of Omdia said that some companies have done a better job than others in safeguarding against crippling shortages.

“Some manufacturers foresaw this happening and laid in extra inventory ahead of time,” Pickering noted.

He cited Texas Instruments as one chip manufacturer that developed a surplus in the wake of COVID-19 so it could continue serve its customers.  “They maintained production for the expected rebound, which happened. They foresaw that what went away was going to come back,” he said.

Pickering also noted that the chip market features a complex supply chain and players of various sizes.

“It’s a diverse market,” Pickering said. “The scene is more diverse, more complicated [than other industries].”