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Fear of shortage of semiconductors

  • IASbaba
  • March 5, 2022
  • 0
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Fear of shortage of semiconductors

Part of: Prelims and GS-III Economy

Context: Moody’s Analytics has warned that the Russia-Ukraine war could hit global supply chains that are already constrained due to the pandemic.

Key takeaways 

  • The worst impact would be on the ongoing chip shortage because the warring nations control significant supplies of key raw materials used in semiconductors.
  • Russia controls about 44% of global palladium supplies and Ukraine produces 70% of the neon supply — two key raw materials that go into making chips.
  • Semiconductors chips are necessary in the likes of automobiles, mobile phones and consumer electronics.

Do You Know?

  • It is estimated that the semiconductor industry is growing fast and can reach $1 trillion dollar in this decade. 
  • India can grow fast and reach $64 billion by 2026 from $27 billion today. 
  • Mobiles, wearables, IT and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021. 
  • The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026

News Source: TH

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