Professional Documents
Culture Documents
i. During Lockdown, semiconductor demand was decreased which lead
to a decrease in production.
ii. WFH culture brought in increased demand for semiconductors, and
due to which mobile companies started stocking chips instead of
selling them in the open market. This led to a shortage of
semiconductor chips
iii. The manufacturing process is cost-intensive and highly delicate. Due
to a shortage of skilled workers, production was not happening at full
capacity. Also, increasing the capacity of fabrication units is a very
capital-intensive task, which takes a lot of time.
iv. Hence all this led to a decrease in production and that is why prices of
electronic devices and automobiles increased.
Additional info: The increase in demand for graphic cards in the crypto
industry resulted in increased prices for graphic cards.
v. Major players in the semiconductor industry: Intel, Samsung, TSMC,
SK Hynix.
vi. Major ingredients for making semiconductor chips: Silicon,
germanium, and sometimes gallium arsenide.
Additional info: Polyaniline is a cheaper substitute for silicon, Philips is
trying to bring it into the manufacturing process.
b. Paint Industry:
i. A recent dealers channel check by ICICI Securities Ltd showed that most
paint companies have raised selling prices by 4-5% during the June quarter. It
is due to an increase in crude oil prices.
ii. The paint industry’s key raw materials are titanium dioxide and crude-based
monomers.
iii. Also, there is trouble in sourcing items like tinplate used to make metal cans;
which can cause delays in deliveries. Shipments too are delayed, due to the
non-availability of containers and vessels, leading to postponing of production
schedules. Europe and the USA markets recently saw a shortage of resins –
a prime ingredient in paint.