Magotan chip shortage may be due to tight manufacturing line capacity and the impact of the pandemic. Below are the reasons for the Magotan chip shortage: Tight manufacturing line capacity: Global semiconductor manufacturing lines are facing capacity constraints. From the overall semiconductor industry perspective, supply-demand tensions have been evident in recent years. As industries continue to upgrade their technologies, the demand for chip products has also been increasing. Taking automobiles as an example, with the technological applications of new energy vehicles and intelligent connected vehicles, the use of chips has multiplied compared to traditional fuel-powered vehicles. Meanwhile, 5G, artificial intelligence, and the Internet of Things are also major growth areas for chips. On one hand, demand has surged significantly, but on the other hand, the growth in chip production capacity has not fully matched the increase in automotive demand. Impact of the pandemic: The most significant reason is the COVID-19 pandemic. In the first quarter of last year, which was the most severely affected by the pandemic, the sharp decline in automobile production and sales led to a sudden drop in chip demand. Automakers and component suppliers canceled chip orders. By the third and fourth quarters, as the Chinese automotive market rapidly recovered, the production cycle of the chip industry meant that new orders from automakers had to be scheduled later, resulting in the automotive chip shortage that began in the fourth quarter of last year.
