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.
- 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