Nokia CEO says we must pay constant attention on the global chip shortage

NOKIA officials say that the company has a manageable stock of the chips and their production hasn’t been affected by the same level as of the other companies.

Nokia CEO says we must pay constant attention on the global chip shortage

The Nokia CEO in an interview earlier this week stated that we need a constant monitoring on the present global chip shortage as the supply chain disruption have been witnessed recently. Additionally, the top official at the company says that it’s not only that the telecomm or the automotive or the IoT devices which have witnessed a decrease in supply. The semiconductor industry as a whole appears to be in a sluggish growth cycle and it has been trying to find measures to somehow increase the supply.

These chips are used in power cars, high-performance computers, phones, defense systems, AI software applications and others. The decline in supply chain for these chips have negatively impacted the growth of automotive industry which leverages these chips in power steering, brake sensors, parking cameras, entertainment systems and others. Many car automakers like the Honda, GM and Ford, are forced to cut down their production owing to decrease in supply of chips in the market.

NOKIA officials say that the company has manageable stock of the chips and their production hasn’t been affected by the same level as of the other companies. However, the officials state, this situation of rising shortages of the chips needs constant attention and monitoring. In addition to this, he says that the medium to long-term visibility of the supply of chips in the market isn’t good and requires deliberate consideration.

NOKIA is a Finland based company which leverages computer chips in its networking equipment and smartphone production, however, the company doesn’t manufacture these chips.The biggest manufacturers of computer chips in the world are, China’s SMIC, Taiwan’s TSMCand South Korea’s Samsung. However, Samsung of South Korea and TSMC of Taiwan are the only companies that are capable of producing 5 nanometer chips. The reasons owing to this shortage of manufacturing plants is the3 fact that these chips are expensive. The production of chips (smaller in size) requires hi-tech equipment which are expensiveand adds to the cost of production.