SoloPoint Insights

Post Shortage: Do We Now Have Enough Chip Supply?

The global semiconductor supply chain has faced a tumultuous journey in recent years, with shortages, disruptions, and geopolitical tensions threatening the stability of this essential industry. In 2022, the United States took a pivotal step forward with the CHIPS Act – a comprehensive legislation aimed at bolstering domestic semiconductor production and securing the critical supply chain. But has this effort curbed the chip supply issue? Let’s review.

The Chips Act


What happened since then?

  • More fab plants are being built:
    • Since then, more fab plants are emerging, as major semiconductor companies race ahead to invest billions of dollars into U.S. plant construction.
      • Intel, Samsung, and TSMC are launching projects in Ohio, Arizona, and Texas with a combined investment of at least $69 billion.
      • Texas Instruments is investing in a sprawling $30 billion new manufacturing site in Texas by 2025.


So far, what is the current state of the chip supply level?

  • Supply in Consumer Electronics:
    • In the consumer electronics industry, two types of chips are currently in oversupply: NAND and DRAM memory chips, which are used in laptops and data center server devices. The oversupply occurred as companies stockpiled chips during the shortage, but then demand dropped, especially for products like smartphones and laptops. It caused a strong ‘bullwhip’ effect on semiconductor manufacturers further back in the supply chain. The once soaring demand for chips abruptly decreased as end markets shifted from ordering new chips to selling their existing inventory instead.
  • Supply in Automotive:


Impact on the Job Market: Increased hiring for more skilled engineers


The increase in chip production will benefit many sectors, not just those within the consumer electronic and automotive spaces. With a greater supply of these crucial components, product developers can create more cutting-edge and innovative technology, driving increased demand for technical and engineering professionals. 

SoloPoint Solutions can help you find these in-demand Mechanical, Electrical, and Manufacturing Engineers with high-end and tailored workforce solutions.

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