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Inflation is causing a significant impact on every silicon wafer supplier throughout the entire world. Inventories are running down, there are lags in deliveries, and shipping costs are on the rise, leading to difficulty in obtaining key production inputs.
Inflation in the silicon wafer industry can be attributed to a combination of factors, from supply chain shortages and demand dynamics to the world’s broader macroeconomics that are constantly on the move.
A combination of factors is driving inflation in the silicon wafer industry. However, there are three key reasons for inflation in this sector:
Smartphones, PCs, automobile systems, and cutting-edge technologies like artificial intelligence (AI) and the Internet of Things (IoT) are all in high demand worldwide, which is fostering the demand for silicon wafers.
The COVID-19 pandemic caused disruptions in global supply chains, from which the world has yet not recovered. Coupled with rising geopolitical tensions, the semiconductor supply chain has been struggling to catch up.
The cost of raw materials required to create silicon wafers, like polysilicon, has increased with the growth in semiconductor demand. This has resulted in a growing inflation in wafer costs.
Rising demand, supply chain interruptions, rising raw material costs, and general inflationary pressures are all contributing to the silicon wafer industry's inflation. Nevertheless, the industry has been making progress in expanding its production capacity.
The new elections in the United States anticipate that the world will continue to change, and here at Wafer World, we’re eager to see this inflation come to a stop. If you’d like to learn more about our wafers and production, reach out!
