It has been more than six months since the entire world is faced with the semiconductor shortage problem. Companies from around the world responsible for manufacturing electronics and other products involving semiconductors are faced with huge problems.
While companies from all over the world continue to fight the challenge at the hand of semiconductors shortage, the chip manufacturing companies are generating huge revenues.
According to the latest reports, the top 10 largest chip manufacturing companies have reported huge revenues coming in for them. The companies have reported that they have observed record-high revenues in the first quarter of 2021.
TrendForce, a famous market research platform has carried out its research on the revenue figures for chip-making companies and shared it in a report. According to TrendForce, the total revenues generated by the chip-making companies in the first quarter of 2021 went all the way up to $22.75 billion.
The report was shared by TrendForce on Monday, May 31, 2021. The companies are constantly observing a surge in their revenues on a weekly basis even when the shortage of chips is alarming.
Whether it is an electric toothbrush, a washing machine, a gaming console, or a car, semiconductors are used everywhere. In the global economy, semiconductors play a role of lifeblood and it plays a huge role in the advancement of companies and industries.
However, the shortage of chips is making the situation worse for the entire world. As a result, companies are only focusing on their bestselling products while they have ceased productions of least sold products.
Additionally, the companies are not even able to produce their bestselling products as per demand due to the shortage of chips. According to many analysts, the situation of shortage of chips is still ongoing and there are no signs of the situation improving any time soon. Global economic analysts have predicted that the shortage of chips may last until the end of 2023.
Chips are used in everything from cars and game consoles to washing machines and toothbrushes. They form part of the lifeblood of the global economy and are vital to many of the world’s biggest industries. But they’re also in short supply — and the shortage could last until 2023.
As a result, the prices of products may continue rising to an unbearable point and the companies would have to cut down on their labor and shifts costing them extra money.
Among all major chipmakers, Taiwan Semiconductor Manufacturing Corp (TSMC) is the largest in terms of production and generating revenues. According to stats, TSMC is responsible for generating 57% of the total chip foundry revenues in the entire world.
In the first quarter of 2021, TSMC observed a 2% increase in its revenue compared to last year. In the running year, its revenue was $12.9 billion, which shows how much the chip-making companies are growing in the running year.