Semiconductor shortages, driven by the COVID1-19 pandemic trends and earlier than anticipated demand recovery, threaten the component and smartphone markets with significant pressure on upside growth in 2021. While most component vendors have secured enough foundry capacity in advance, they will likely miss out on some revenue opportunities due to shortages. In this insight, we analyse some of the driving forces behind the current wave of shortages, consequences and what actions the industry is taking to address shortages.
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