The Semiconductor Crisis

Abstract: The use of technology and electronics has grown at a rapid pace in recent decades. As a result, people in today's society have become more indirectly dependent on semiconductors, due to the fact that they are found nearly in all of today’s electronics. In addition to the fact that there are only three manufacturers of semiconductor components, large investments are required over longer time horizons to establish the factories. This is because advanced technology, as well as mass production as a production strategy is required, in order to make the manufacturing of the components profitable. This report examines several reasons for the current shortage of semiconductor components. For example, the difficulties in the manufacturing process of these products are investigated and why there are no more than three manufacturers, but also if new ones will arise in the future. The thesis also examines how factors such as the covid-19 pandemic have affected the current manufacturers, and how companies using the semiconductor components have been affected, and what consequences this may have for the individual in society. It is also being investigated whether it is possible to recycle these products to counteract the shortage. In order to obtain relevant information about the issues regarding the semiconductors, literature studies, interviews and study visits have been carried out. Credible results have been obtained through the various sources. As a result of the difficulties regarding the manufacturing processes of the semiconductor components, more investments is required in order to continue producing the integrated circuits in the future. Furthermore, the results states that covid-19 has played a significant role for the current shortage, but that the shortage already existed before the pandemic and that it will remain for some time to come. Moreover, the recycling of integrated circuits is considered a challenging problem and it is unlikely that an effective solution will exist in the near future.