Semiconductor chips are in short supply and high demand at the moment. These chips are technologically hard to make and production is highly concentrated in Taiwan and Korea. With semiconductors present in an ever-increasing share of the goods that global consumers buy, a global shortage can be seen as akin to a modern-day oil shock - with widespread consequences for economic activity, inflation, and even geopolitics.

In this episode, our host Paul Diggle is joined by Sree Kochugovindan, Senior Research Economist and Robert Gilhooly, Senior Emerging Markets Research Economist from abrdn Research Institute. Together they discuss the reasons behind the global semiconductor shortage and what this means for markets.

Part 1 explores the supply and demand factors behind the current shortage their consequences and how long they may last.

Part 2 focuses on the implications for inflation, chip production, geo-strategic competition and reliance on global supply chains. 


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