Algo Trading


Stock Market Blogs

Semiconductor Chip Shortage August 23 2021World Market

Visit Count: 1137

Soon Semiconductor chip shortages have sent shockwaves around the world, affecting most industries and might even harm the global economy soon. Since the era of computers and automation, the demand for semiconductors has increased to insignificant proportions.

What exactly is a semiconductor chip?

A semiconductor is a substance that conducts electricity more than an insulator but less than a pure conductor and is found in thousands of electrical products.

A semiconductor chip is an electric circuit constructed on a semiconductor wafer that contains several components such as transistors and wires.


Where is semiconductor chips used?

Semiconductors are used in thousands of items, including computers, smart phones, appliances, gaming devices, automobiles, and medical equipment.

Major players

·       Intel

·       Samsung

·       Wipro

·       NXP semiconductors

·       TSMC

·       Applied material

·       Qualcom

·       Nvidia

·       Texas Instruments

What caused Semiconductor shortage in the world?

The reason may be traced back to when covid-19 began, when there was a large drop in demand for semiconductors due to reduced demand because of mandated lockdown in practically all parts of the world, which impacted the production process and demand.

As soon as the manufacturing process began, electronic goods makers proceeded to submit orders, resulting in an ongoing backlog to meet the demand for chips from chip manufacturers.

Other reasons that fueled the fire included a storm that briefly halted all manufacturing operations in TEXAS around February, as well as US-China tensions that suspended all foreign companies that use American chip technology to sell to Chinese factories.


Which industries are being impacted by the chip shortage?

Most industries have been disrupted as a result of the semiconductor shortage, which is expected to cause billions of dollars in losses in the near future.

a. Automakers have reduced automobile output;

b. Mobile phone businesses have delayed production; and

c. Gaming companies such as Xbox and PlayStation have cut production to half.

When will the semiconductor industry be able to meet incoming and future demand?

Since the influx of demand, firms have begun producing chips at full capacity, but the damage has been done, and it is likely to recoup in 2-3 years, according to industry analysts.


Some countries have stepped in and implemented steps to increase demand and fill the demand gap that has been created.

South Korea promised a massive $451 billion investment, while the US Senate proposed $52 billion in chip factory subsidies.

Tata Group Chairman N Chandrasekaran stated on August 9, 2021 that the Tata Group is aiming to enter semiconductor manufacturing and has established a business to capitalise on the opportunity.

The Ministry of Electronics and Information Technology intends to reform its policy framework, in which the government would take a more active role in expanding the sector by luring more private businesses and giving early money to help India become a worldwide semiconductor hub.

Semiconductor Chip Shortage, global economy, automobile sectors, Covid-19, finance updates, 

Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




Indrendu Joshi. Email: Call : 0731-4797275

Investor grievance complaint :