The crisis stems from limited production capacity, long fabrication lead times, and underinvestment in mature chip manufacturing nodes critical for sectors like automotive. Additionally, rising demand driven by AI, cloud computing, and data centers exacerbates supply constraints. The shortage impacts product availability, increases costs, and forces companies to rethink supply chain resilience and planning strategies unique to the semiconductor industry. Addressing this requires enhanced visibility, diversification of suppliers, investment in domestic manufacturing, and leveraging cloud-based supply chain management solutions to improve responsiveness and mitigate risks.

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