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Semiconductors are as ubiquitous as they are crucial to the modern economy and yet they are in short supply this year. In January, the world’s largest carmakers raised alarm bells about not having enough chips, but what looked to be isolated to one industry has enveloped more sectors in the weeks since – including TVs, mobile phones, video games, and PCs. Home to some of the world’s largest chipmakers, South Korea has so far been mostly unaffected by the shortfall in semiconductors, though major conglomerates are indicating their bottom line will take a hit soon.
The initial cause of the chip crunch can partly be traced to the auto industry. When COVID-19 first struck in early 2020 and precipitated a sharp fall in global demand, many of the world’s top automakers responded by cutting back on chip orders – needed for everything from infotainment systems to rearview cameras to even powering electric vehicles. With consumers spending more on personal electronic
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