The Global Chip Shortage and its Economic Impact (2020 – 2023)
The Global Chip Shortage and its Economic Impact (2020 – 2023)

Author(s): Nikolay Kostov
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Supranational / Global Economy, Business Economy / Management, Sociology, Economic policy, Policy, planning, forecast and speculation, Economic development, Environmental interactions, ICT Information and Communications Technologies, Globalization, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: semiconductor shortage; supply chain; inflation; economic impact
Summary/Abstract: The global semiconductor shortage, spanning from 2020 to 2023, has become a critical economic disruption, revealing vulnerabilities in global supply chains and triggering widespread consequences across various industries. This paper explores the causes of the shortage, including the COVID-19 pandemic, geopolitical tensions, and shifts in consumer behavior, and examines its profound impact on key sectors such as automotive manufacturing, consumer electronics, and healthcare. The study analyzes governmental and corporate responses, highlighting initiatives like the U.S. CHIPS Act and the European Union’s Chips Act, which aimed to address supply constraints and bolster domestic production. Furthermore, the paper assesses the economic consequences of the shortage, such as inflationary pressures, production delays, and unemployment, while considering the broader implications for global trade and industrial strategy. Finally, the discussion reflects on the lessons learned and how the crisis has reshaped global perspectives on supply chain resilience, urging future investments to mitigate similar disruptions. Through this analysis, the paper sheds light on the complexity of modern supply chains and the need for strategic planning to ensure long-term economic stability.

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