Lessons learned in the wake of a global pandemic
News Lessons learned in the wake of a global pandemic While the human cost of the COVID-19 pandemic is a tragedy, there are some important and positive changes which are emerging in how governments and businesses are operating. Never before has major structural reform been achieved so swiftly, nor have cheques for billions of dollars been signed so unreservedly. Booming consumer demand for products incorporating increasingly complex electronic systems and challenges with freight have led to significant supply disruption over recent months, which have profoundly affected almost every industry. Since the beginning of 2021 there have been a steady stream of billion-dollar company announcements warning investors of production delays, postponed launches and impacted profits. The shortages are indiscriminate: in April, even the largest company in history, $2tn Apple Inc, was forced to concede a delay in production by several months for some of its products. This follows similar statements from companies operating in every sector. Those companies operating in the embedded/industrial electronics space have been even more heavily impacted. The capacity constrained semiconductor fabrication plants have prioritised orders destined for the higher volume consumer electronics market over industrial customers. In the wake of such severe economic consequences, governments and corporations have been taking rapid action backed by unprecedented levels of investment in an attempt to address the problem. After President Biden ordered an investigation into the global semiconductor shortages, his administration has proposed a $50bn investment into US domestic semiconductor manufacturing and research. EU countries have pledged investment of up to $145bn into Europe domiciled design and production of semiconductors. Alongside this, Asian fabrication giants such as TSMC are investing billions into capacity expansion. As impressive as the pace and potency of these actions are, in the short-term they will have limited benefit [...]