News on the global chips and components shortage has been doing the rounds from the last couple of months and the consequence of the shortage is now being felt by every link in the supply chain. Though the affects of the shortage were felt from as early as 2018, the COVID-19 pandemic has exacerbated the situation with supply chain disruptions and production issues.
The pre-pandemic shortage was created by the sharp increase in components demand by the automotive industry and the growth of IoT applications in general. The automotive industry has been including smarter electronic systems in vehicles including infotainment systems, navigation and steering support, advanced driver assistance systems (ADAS) and autonomous vehicle software. IoT applications spanning industries continues to grow adding sensors and wireless communication to diverse, innovative applications, hence increasing the demand for an entire slew of electronic components.