By the end of 2021, solving the shortage of chip semiconductors in the automotive industry has become an urgent supply chain problem. For example, due to the impact of semiconductor shortage, Toyota Motor Company has reduced the number of smart keys for some new cars sold in Japan since November 2022 from the usual two to one. New car customers will get a smart key and a mechanical key. The emergence of such low-technology measures comes at a time when many chip manufacturers have announced layoffs to cope with the mismatch between supply and demand. Among them, the number of layoffs of Micron Technology has caused some waves.

Meguiar announced that it plans to cut about 10% of its workforce in 2023 by combining voluntary and layoff. According to public information, Meguiar has about 48000 employees, and this 10% layoff means that nearly 5000 people will be affected. In addition, Meguiar also said that it would suspend the bonus payment in 2023.

In addition to the reduction in capital and capacity, Meguiar's progress in advanced technology has also begun to slow down. In terms of advanced technology, Meguiar decided to slow down 1 β Production speed, 1 γ It will also be delayed until 2025, and the next NAND node with more than 232 layers will also be delayed.

In addition, the downturn of Intel's personal computer department was also one of the factors that led to its layoffs. More complex, Meguiar and Intel both invested in new factories in the United States with the support of CHIPS and the Science Act. Meguiar plans to invest up to US $100 billion in the next 20 years to build a semiconductor manufacturing plant in Clay, New York.

China's COVID-19 policy has also put pressure on the entire supply chain. This policy has been relaxed recently, but even a shortage of components or materials will hinder the supply of equipment.

Jennifer Strawn, head of global solution procurement at Rand, an American electronics dealer, said in an interview with EE Times that, considering the existence of various uncertainties, chaos is a natural response. In addition, since 2020, to support "telework, a large number of 5G (fifth generation mobile communication)/IT infrastructure will need to be installed. The sudden rise in demand also has' sequelae ', that is, all these infrastructure needs to be rebuilt."

"This has led to a surge in demand for raw materials and semiconductor chips, which will be stable by the end of 2022. But by the beginning of 2023, the situation has changed," Strawn said.