The world is currently experiencing a shortage of semiconductors or chips, which slows the production of various products that rely on chips to drive data processing, such as cars, trains, smartphones, other electronic devices, etc. Moreover, it is also a significant part of the automobile industry, which tends to be a big problem for automakers. The semiconductor shortage issue will require car manufacturers to cut millions of vehicle productions and lose hundreds of billion dollars in revenue. 

The shortage of semiconductors affects many industries, especially the automotive and technology industries. Several leading automakers have to temporarily shut down their production lines due to the crisis. Furthermore, it indirectly affects the industries in the supply chain, such as the rubber industry, which be used as raw materials to produce tires.

Latest on Wednesday, September 15, 2021, the European Commission has announced plans for a New chipmaking “ecosystem” to enable the EU to be competitive and self-sufficient after a global semiconductor shortage showed the hazard of relying on Asian and US suppliers. The new European Chips Act aims to jointly build a state-of-the-art European chip ecosystem, including manufacturing, which secures supply and will develop new markets for advanced technologies of Europe. Meanwhile, the US had announced the CHIPS for America law last year to increase their competitiveness toward Chinese technology. Taiwan has positioned themself to ensure that they will be the largest in semiconductor manufacturing. On the other hand, China is trying to close the technology gap due to the restriction by export control rules in avoiding technology transfer.

Due to the semiconductor shortage crisis, it cannot be evaluated the damage and when it will return to its normal state. Therefore, adaptation and planning for the future are the most important. The Thai Rubber Association expects that the semiconductor shortage crisis will rapidly resolve to prevent the impacts on the Thai rubber industry.

Mr.Chaiyos Sincharoenkul

President

The Thai Rubber Association