The chip crisis in the world

The chip crisis in the world

The chip crisis in the world and the United States plan to compete and China suffer heavy losses


The global economy is still suffering in light of the acceleration in raising interest rates amid geopolitical risks,
which increases the fear of a global recession,
and this has an impact on the significant decline in sales of electronic chips,
which caused a global crisis for most major countries such as China and the United States



The beginning of the crisis

Cryptocurrencies return to fall below 19 thousand Find out the reasons.












The beginning of the crisis

The crisis appeared in electronic chips immediately after the world passed
by the Corona pandemic and the closures,
which had an impact on all countries of the world in 2020, but in light of the pandemic,
demand was declining significantly, but soon countries reopened,
from where demand increased again, and the crisis appeared as the situation changed,
where demand witnessed a significant rise in many sectors and
companies could not fulfill promises and deliver demand on time,
as a result of another crisis, which is the supply crisis



Affected by chip shortage crisis

The shortage of semiconductor chips has had a very large impact on many
industries that rely on chips directly or indirectly.
For example, we find automakers such as Ford,
Vision and Nissan that have lost billions due to the decline in chips,
which are heavily relied upon in automotive components.


Also, the damage reached smartphone companies due to the increasing demand for products,
and because of the shortage led to delays in the production of televisions and devices.




Difficulty in increasing production

Electronic chips are accurate and sensitive and have complex requirements for their manufacture,
and therefore it was difficult to emerge new factories
that increase production in order to meet the increasing demands caused by the Corona crisis,
and according to statistics, the cost of building a factory for
the production of chips is about 20 billion dollars.











U.S.-China Struggle over Chips

At the beginning, we must know the importance of electronic chips,
which are included in the most important industries, including solar panels,
spacecraft, computers, cars, household appliances and many different industries.
According to statistics, the largest international companies


represented by the 30 largest companies rely entirely on Taiwan’s production of chips,
because the generation of events are manufactured specifically in Taiwan,
and therefore Taiwan’s safety is also economically necessary to maintain
the rate of production of these chips and that any political tension or war that occurs inside Taiwan
directly leads to a global industrial depression,
where Taiwan’s GDP reached Chip industry in 2020 to $600 billion.


In light of this frankness, US authorities dealt a blow to China by not exporting
two of the most important segments on which
artificial intelligence is mainly relied upon by Nvidia Corp.


The Chinese side was of the fact that this is an effort by the United States
to take full control of the technological industries.




50 billion U.S. Chip Competition Plan


As part of a plan agreed by US President Joe Biden,
the United States decided to invest in key parts of the modern electronics industry,
which in turn helps the US economy compete significantly in the technology of the future.


The plan was at a cost of $ 50 billion in aid to re-engage the production of connector youth,
and these funds will be directed and restrictions will be imposed
that do not allow companies to buy back their shares.

It will be confirmed that funds for financing are spent in the production of chips only
and that they will not use them in investments in China either.















Cryptocurrencies return to fall below 19 thousand Find out the reasons.


Digital currencies, especially Bitcoin,
returned to decline at the beginning of this week’s trading, to record $ 19,000 per bitcoin,
and thus recorded its lowest level during 2022,
after it recorded the same level on the fourth of last June when it reached $ 18,600,
and this was the result of decisions Taken by
the Federal Reserve from limiting cryptocurrency investment



The market value of the cryptocurrency market is declining

In light of these significant declines in the prices of digital currencies and the weakness of their currencies,
the decline in the market value of the market fell to less than
1 trillion dollars after it lost nearly 2 trillion dollars during the year,
and perhaps the most important reasons for the decline are high-interest rates and inflation,
which in turn led to the disposal of From most major crypto bets




Reasons for the collapse in bitcoin prices below 19 thousand dollars

The most prominent of these reasons is the close relationship and
correlation currently between the sale of digital assets and the US stock market,
and while the stock market witnessed a decline, this had an impact on Bitcoin.


The reason behind the decline in stocks is mainly due to the desire of
the Federal Reserve to maintain a monetary policy that guarantees
high-interest rates in order to face inflation for 4 decades,

which promoted the sale of assets that include high risks such as stocks and Bitcoin

Also, the events of the energy crisis and Russia’s decision to close the Nord Stream 1 pipeline,
which is responsible for the flow of gas to Europe,
contributed to many concerns and fears about the exacerbation of the crisis significantly,
and thus reflected on the Bitcoin investors, who in turn decided to sell intensively Bitcoin.




Netflix bans cryptocurrency ads

In a decision by the giant company in the field of live broadcasting,
it reported banning all advertisements related to cryptocurrencies,
and this included the ad-supported package that will be launched next November,
but despite this ban, digital currencies regained their cohesion again and were not affected many bans


Netflix is ​​not the first company to take action in this regard,
as Meta decided in 2018 to ban cryptocurrency ads before bringing it back in the same year.


Also, Alphabet, a subsidiary of Google, has lifted the ban on ads related to cryptocurrency in 2021



artical name The chip crisis in the world


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