Silicon Chip Supply Chain

San Diego Cymer –> Netherlands ASML –> TSMC –> NVIDA/AMD/etc.

During the COVID-19 pandemic disruptions in the silicon chip supply chain were blamed for a shortage of automobiles. In fact, the supply was not significantly disrupted with the industry producing more chips in 2021 than it had in 2020. Demand was the root cause, with the shift to remote work and Chinese stock piling. Auto shortages were the result of the auto industry cutting orders anticipating less demand and the supply shifting to other channels1.


References

1.
Miller, C. Chip War: The Fight for the World’s Most Critical Technology. (Scribner, New York, 2022).

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