The chipset shortage has started becoming evident throughout the world. Because of issues in the supply chain, the semi-conductor companies aren’t able to fulfil the orders in the capacity they used to. It is worth noting that telecom and smartphone/tech industries aren’t the only ones that require chipsets to make their products function. Others, including the automotive industry, also require it. Because of the low supply, even the normal demand seems too high. Whenever a resource or a component starts becoming scarce, companies and industries start fighting over it. This is what is happening right now with the chipsets.
Telecom Industry Unhappy With Automotive Sector Getting ‘Special Treatment’
The US telecom industry is a little unhappy with the government because of the ‘special treatment’ that it is about to receive. As per a Lightreading report, the American Automotive Policy Council Trade association said that the government should construct facilities that can manufacture auto-grade wafers/chips. The Alliance for Automotive Innovation trade group feels the same and believes that the government should set aside a little portion of its budget so that new chipset facilities can be built to help the auto industry that has been ‘uniquely’ affected because of the chipset shortage. But the US telecom industry believes that no such special treatment should be provided to the auto industry. As per the telecom industry, each and every sector has been affected by the chipset shortage; thus, it won’t be fair to everyone else if the auto industry is the only one getting special treatment or help from the government. This makes sense since every industry that used or relied on chipsets for the manufacturing of their products are facing severe shortages right now. Thus it wouldn’t be fair for any government around the world to favour one particular industry at the expense of chipset shortage. It will be interesting to see where this argument leads to.
