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Between 2020 and 2023, there was a worldwide chip shortage affecting more than 169 industries, [1] which led to major price increases, long queues, and reselling among consumers and manufacturers for automobiles, graphics cards, video game consoles, computers, household appliances, and other consumer electronics that require integrated circuits (commonly called "chips").
From early 2020, the effects of and the mitigation of the COVID-19 pandemic caused disruptions in supply chains and logistics. This was coupled with a 13% increase in global demand for PCs owing to some countries' shift to a stay-at-home economy, [6] and impacted the availability of key chips necessary for the manufacturing of electronics. [7]
In 1990, the U.S. controlled nearly 40% of the world’s semiconductor chip manufacturing capacity. Now that figure is just 12%, according to the Semiconductor Industry Association.
According to some U.S. semiconductor firms, the new export controls will have "negative ripple effects" on future investment in research. They cite a decrease in sales to China and a congested supply chain which in turn reduces revenues, thereby reducing capital previously allocated to fund research for the next generation of chips or equipment.
The collaboration will take place as part of the U.S. CHIPS Act, a 2022 law that created a $500 million fund for developing the semiconductor supply chain through initiatives with allies and partners.
Asymmetric price transmission (sometimes abbreviated as APT and informally called "rockets and feathers" , also known as asymmetric cost pass-through) refers to pricing phenomenon occurring when downstream prices react in a different manner to upstream price changes, depending on the characteristics of upstream prices or changes in those prices.
Haitz's law predicts that the brightness of LEDs increases as their manufacturing cost goes down. Swanson's law is the observation that the price of solar photovoltaic modules tends to drop 20 percent for every doubling of cumulative shipped volume. At present rates, costs go down 75% about every 10 years.
The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on August 9, 2022. The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States, for which it appropriates $52.7 billion.