Auto chip shortages are due to the increased volume of chips per car, and a delay in restarting production to meet the surge in demand, says the Analog Devices CEO.
With semis becoming critical in almost every area of the economy at an ever accelerating rate which I call the "Great Acceleration" the semiconductor industry is going to see shortages in many areas as not only the number of uses faces ever accelerating growth, but the markets themselves. We are going see and have already are seeing ever more and creative uses of semis on top of the growth in already established markets. All this presents a tidal wave of opportunities for semis of all types, not just traditional chips. The solar and battery areas are but one example of this and both are growing and advancing at ever faster rates with obsolescence of older systems adding to the demand at an ever accelerating rate. The speed of obsolescence is only adding to the demand, adding a second significant driver to the ever expanding market for semis. For any business plan in almost all industries, the rate of change in technologies and their increasing penetration along with obsolescence has to be taken into account and a vision of radical changes technology can bring on has to be central to any business plan. Shortages of critical semis will have to factored in as part of any business equation.