Global semiconductors will likely stabilize from the chip shortage in the second half of 2021, CNBC reported Tuesday.
- Goldman Sachs Chief Asia Economist Andrew Tilton believes the sector is currently in its worst period as the auto industry records its biggest disruption. This will then gradually ease in the second half of the year.
- Tilton flagged that the outlook could change should there be other disruptions in the supply chain. One of the concerns is the resurgence of COVID-19 in Taiwan, a major player in the semiconductor supply chain.
- Consulting firm AlixPartners expects the auto industry to lose $110 billion in revenue this year due to the chip shortage. The largest impact to car production will likely be realized in the second quarter before improving in the second half of 2021 into next year.
The hike in global demand has caused the chip shortage which in turn hit production of household electronics and automobiles. SMH is up 0.32% premarket.