06/07/2021
Lighting Industry Is Being Hit by the Global Chip Shortage
The ongoing global chip shortage has roiled the automotive and consumer technology industries for months. But the ripple effects of the crisis, which could last into 2022, stretch far beyond automakers idling plants and consumers waiting longer for the latest gaming consoles.
According to an analysis by Goldman Sachs (GS), the semiconductor shortage touches a mind-blowing 169 industries in some way. We're talking everything from steel product and ready-mix concrete manufacturing to industries that build air conditioning systems and refrigerators to breweries. Even soap manufacturing is impacted by the chip crisis.
The graphic below breaks down the various industries that are dealing with the shortage.
Global Chip Shortage.png
To determine which industries were hit by the shortage, Goldman Sachs looked at each industry's' need for microchips and related components as a share of their GDP. Industries that spend more than 1% of their GDP on chips, the firm says, will be impacted by the semiconductor shortfall. For reference, in the automotive sector, 4.7% of industry GDP is spent on microchips and related semiconductors, on this basis, according to Goldman.
Chips aren't exactly easy to make, either, with advanced semiconductors taking up to 6 months to produce. The chip crisis is still far from over, however, and as industry leaders and politicians work to ease the strain on manufacturers, consumer goods will still cost more as a result, with Goldman predicting a 1% to 3% jumping in prices.
In other words, if you're in need of a car or some kind of laptop or other piece of consumer tech like LED lights, now is the time to buy — if you can find them.
Source: Yahoo Finance, GOLDMAN SACHS
