Global semiconductor shortages have deepened significantly as Taiwan, home to over half the world's advanced chip production, warned yesterday of extended supply delays expected to persist through next year. The island's largest manufacturers signal limited capacity to meet surging artificial intelligence demand.
Taiwan Semiconductor Manufacturing Company and rival SK Hynix declined to specify delivery timelines, citing supply chain complexities. Industry analysts estimate the current shortage could persist for 18 months, affecting consumer electronics, vehicle manufacturers, and cloud computing firms worldwide. Prices for advanced chips have climbed approximately 15 percent since October.
The shortage stems from geopolitical tensions and uneven demand distribution across sectors. South Korean competitors face similar constraints, with Samsung Electronics reporting production bottlenecks at its foundries in Pyeongtaek. A Samsung spokesperson said output capacity would remain limited pending resolution of supply chain inefficiencies.
Governments intervene as concerns mount. The United States Department of Commerce announced new investment incentives for domestic semiconductor manufacturing, pledging $5 billion in direct subsidies. The European Union simultaneously launched its own initiative to reduce dependence on Asian producers. Officials in both regions warned that prolonged shortages pose national security risks.
Market observers point to structural changes in consumption patterns. The transition toward artificial intelligence applications has created unprecedented demand for specialized processing chips, while traditional semiconductor markets contracted.
