Complex global supply chain of semiconductors explained in 1 chart
(ZEROHEDGE) – The global supply chain of a semiconductor chip is complex and spans the globe. For example, a camera image sensor produced by On Semiconductor is first created with wafers in Taiwan for packaging and testing, then to Singapore for storage, then on to China for assembly into a camera unit. The camera unit is sent to a Hyundai component supplier in Korea before being mounted on Hyundai vehicles in auto factories around the world, according to Reuters.
A shortage of that image sensor has resulted in Hyundai Motor’s plant’s idling in South Korea. Other automakers such a Ford Motors Co, General Motors Co, and Volkswagen are experiencing issues.
The example of On Semiconductor’s image sensor winding journey around the world shows just how difficult it is for the chip industry to increase capacity to address the current shortage.
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