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China is dealing with an energy crunch due to constrained coal supplies and carbon emission-related power cuts. As a result, semiconductor companies with facilities in the region have dealt with operational disruptions.

Last month, a foil balloon temporarily knocked out power across Dresden, Germany. As a result, facilities maintained by Infineon Technologies, Bosch, and GlobalFoundries in the area were affected.

Industry analysts expect the electric vehicle market to expand to $725 billion by 2026, up from $171 billion last year. Chipmakers are working to fuel the segment’s explosive growth by developing new silicon carbide (SiC) and gallium nitride (GaN) components.

A recent surge in coronavirus infections in Southeast Asia has exacerbated the global chip shortage, especially within the auto industry. As a result, the reconfiguration of the global electronic components supply chain has been affected.

Google is reportedly developing Arm-based custom processors to power the next generation of its Chromebooks and tablet computers, which are set for release in 2023. However, the Big Tech giant’s strategy might be affected by changing the electronic components industry.

The European Commission declared its intention to support an advanced domestic semiconductor ecosystem via the European Chips Act. Recently, Intel, TSMC, and Samsung have expressed interest in establishing capacity in the region.

Technavio, a market research company, expects Vietnam’s semiconductor industry will reach $6.16 billion in value by 2024. The country’s domestic chip sector is growing at a healthy rate due to robust government and corporate investments.

Intel CEO Pat Gelsinger reiterated the corporation’s intent to build a massive semiconductor factory in Europe within this decade. He also outlined its plans to modernize the automotive sector’s chip manufacturing processes.

Semiconductor Manufacturing International Corporation (SMIC) announced it would spend $8.87 billion establishing a new 12-inch fab in Shanghai. It is also expanding the production capabilities of its other Chinese fabrication sites.

Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s leading foundry service provider, plans to increase its fees by up to 20 percent starting in January 2022. That development will likely result in higher costs in several end markets.