There are numerous factors contributing to the semiconductor crisis but the crux of the problem came when the sudden lack of demand for the chips from the automotive industry coincided with an increase in demand for consumer electronics. Car plants shut down globally as Covid spread beyond China and orders were cancelled, while the demand for electronics increased. Now the demand from the car industry is as intense as ever.

That is helping drive the growth of semiconductor sales. This year, chip sales are expected to grow to $625 billion (+10%). While the vast majority of chips are produced in Asia, huge investments are now being made in Europe to localise supply and take the risk out of supply chains vulnerable to disruption. European authorities hope to reach a 20% market share in chip manufacturing by 2030.