Since anything that needs to compute or process information contains a chip, they are extremely important in our lives. And because demand for ICs is greater than the supply, there is a global shortage of them. The rapid acceleration of the Internet of Things was one of the culprits even before the COVID-19 pandemic and "forever moves semiconductors ahead of oil as the world's key commodity input for growth," according to economic investment firm TS Lombard. While the U.S. leads the world in developing and selling semiconductors, accounting for 45% to 50% of global billings, manufacturing has shifted to Asia. Taiwan and Korea account for 83% of global processor chip production and 70% of memory chip output, and the region's lead is projected to continue to expand.
Taiwan dominates the foundry market, especially Taiwan Semiconductor Manufacturing Co., which is more commonly known as TSMC and accounted for 54% of total global foundry revenue last year. There wasn't always a shortage. Worldwide semiconductor sales declined between 2018 and 2019, but by 2020, sales grew 6.5%, according to trade organization the Semiconductor Industry Association. The rapid growth continued into 2021, and sales in the third quarter of 2021 were 27% higher than the same time period last year. More semiconductor units were shipped during the third quarter of 2021 than during any other quarter in the market's history, the SIA said.
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