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July 27, 2021
Analysts suggest the U.S. may face a semiconductor shortage until at least 2022. That could lead to higher prices for tech devices.
SHOW TRANSCRIPT
Correcting the semiconductor shortage can’t be done with a short term fix. Between high production costs and long lead times, increasing chip supply isn’t as easy as building more production facilities. For the last 40 years, the semiconductor industry has been known for wild shortages and wild oversupply. You can t really build a small factory. You ve got to build this mega factory, said Jim Feldhan, President of Semico Research.
Semiconductor fabrication plants, also known as fabs or foundries, take billions of dollars and years to construct. Designing and constructing chip parts, known as wafers, is a months-long process that includes heating silica sand over 3,000 degrees Fahrenheit.