Austin-based NXP Semiconductors reported that as Texas was shut down for a month due to a grid collapse caused by cold weather, it could cost the company $100 million.
Why it's a matter of concern?
The global chip shortage (due to pandemic-related supply chain disruptions and climate change-related disasters) has put the US auto manufacturing industry in trouble and may threaten the vitality of economic recovery after the pandemic.
- NXP’s Austin plant is back online, however Samsung has not yet resumed full production.
- In Taiwan, the main center of semiconductor production, droughts related to climate change threaten chip production, and chip production depends on an adequate supply of water.
- An analysis by Seeking Alpha shows that large technology companies like Apple have more experience in planning long-term chip demand and have locked in their supply, while the automotive industry with a "just-in-time" production concept may encounter greater Difficulties.
Written by
Swasti Pujari
Associate Director, Backend Engineering at CoreIC Technologies, with 15+ years in VLSI Physical Design and backend engineering. Previously Practice Head at UST Global, leading Physical Design, STA, EMIR, DFT, and Physical Verification. Delivered 3nm, 6nm and 7nm projects for AMD, Intel, and Microchip, and published IEEE research on hybrid AI-EDA floorplanning.
