The global semiconductor shortage is going from bad to worse.
It's a huge headache for various industries ranging from manufacturers of PCs and mobile devices to vehicles and industrial machines.
Tech giants Samsung and Apple, automakers Hyundai and Ford are only a few in flagging production cuts and losing revenue from the crisis.
And the impact is spreading beyond on its way to disrupting the entire global market.
For an analysis, joining us live from Washington, D.C. is Kevin Allison, Director of Eurasia Group.
Kevin, great to have you on the show.
You're with the firm's geo-technology's practice division. How do you assess the worsening semiconductor shortage worldwide which, of course, stemmed from the Covid-19 pandemic but, what's deepening the crisis?
So, Taiwan's TSMC and South Korea's Samsung Electronics together control more than 70-percent of the chip manufacturing market. The U.S., once a leader, lags behind after monumental shifts in the business models in the semiconductor industry. But, the global chip shortage this time and geopolitical tensions with China have created a drive in Washington to bring manufacturing back and regain leadership.
Where does this leave China considering China also wants to develop next generation chip technology to be able to compete with the big boys like TSMC, Samsung, and Intel?
How would growing U.S. pressure on S. Korea and Taiwan to restrict China's access of chips affect the supply chain for S. Korea, Taiwan?
The report also analyzes that the U.S. will continue to hold key advantages while using punitive measures against China. Does intensifying U.S.-China chip competition mean the crisis won't end anytime soon?
Semiconductor industry is a highly specialized, complex and capital-intensive industry, which makes it difficult to reach the top tier of the global chip market. But now many countries are striving to bring manufacturing to their shores. Do you expect a drastic change in its landscape in the coming years?
Kevin Allison, Director of Geo-technology practice at Eurasia Group for us tonight. Thank you. We appreciate your time.