RIYADH: Global semiconductor chip shortage due to coronavirus outbreak (COVID-19) has given the UK more use to boost its local production so that it is less dependent on foreign manufacturers, an IT expert based in the Kingdom.
The shortage has pushed chip stocks to record record highs, and analysts expect chips to remain scarce at least by the end of 2021.
Maribel Lopez, chief analyst at San Francisco-based Lopez Research, told MarketWatch that the chip industry is facing a “complete storm” of demand and supply issues that are unlikely to be resolved soon.
“Unless we have a great economic situation, and that is possible, one of the things that is happening right now is that almost anything you buy has a chip,” Lopez said.
Reuters said chip prices could rise by up to 6 percent this year, but the delay has also cut production short. Carmaker Ford said it would see a 20 percent cut result due to a shortage of supply. Last week, US President Joe Biden announced $ 37 billion in funding to address the situation.
“The importance of semiconductors cannot be underestimated due to their strong use of the Internet of Things, computers, smartphones and consumer electronics. However, global semiconductor shortages and unprecedented demand among the pandemic have contributed to the situation for a wide range of industries. It has forced car manufacturers, defense, industry and others to cut production and even close collection lines. ” Muhammad Khurram Khan, professor of cybersecurity at King Saud University and founder and CEO of the Global Foundation for Cyber Studies and Research in Washington. , told Arab News.
He said: “If the current situation continues for the coming months, there is a higher chance that the UK will see a rise in prices for electronics. Therefore, it is best for local importers, businesses and consumers to plan accordingly. ”
The professor said that the current global supply shortage could lead Saudi Arabia to invest more in this sector and develop its local capabilities.
“This would reduce dependence on imports, meet local manufacturing demands, boost the economy, and create job opportunities in the UK in line with Saudi Vision 2030,” he said.