The global semiconductor shortage is causing bottlenecks in many industries.
The international technology group Giesecke+Devrient (G+D) warned of failures in key economic areas such as connectivity, payment systems, and electronic identities, and pointed to the far-reaching consequences that shortages can cause.
In an increasingly digital world, the current Chip shortage It is having a considerable impact, and its severity is increasing every day. As shocking as the stagnation of the automobile assembly line or the delay in the delivery of smartphones, failures in important production areas and manufacturing industries (such as connectivity, payment, and electronic identity) may have a more lasting impact on the national economy. Industry associations and umbrella organizations such as Eurosmart, Secure Identity Alliance (SIA), Smart Payment Association (SPA), and Trusted Connection Alliance (TCA) have issued strong warnings about possible economic risks and dangerous social consequences.
An internal analysis by G+D indicated that a 10% reduction in payment card production could cause a profound disruption in cash supply and electronic payments, which would result in significant economic losses. The negative impact on the macroeconomic and microeconomics will be extensive. In addition, the shortage of chips may have an equally considerable impact on the production of SIM cards. The digital world mainly operates through electronic communication channels, so the availability of end-to-end connections based on various SIM cards is crucial. If there is a long-term bottleneck here, then countless daily communications between people and machines, IoT platforms and other networked applications will be at risk. Also affected is the personal identity department. Chips embedded in national electronic ID cards (eID) and passports can identify billions of people around the world. Sovereign documents allow them to access public services, medical care, and many other important services, such as opening bank accounts.
This is why Ralf Wintergerst, CEO of Giesecke+Devrient, called for responsibly addressing the current supply shortage to minimize damage to all departments:
“Policy makers have a responsibility to support the economy and its most important factors of production as a whole, not to serve the most resounding specific interests.”
“Stable payments are the backbone of any economy, and connectivity can promote communication and knowledge sharing. On the other hand, a credible legal identity is essential to protect people’s rights. In the final analysis, this is related to the economic prosperity and prosperity of the entire country. social stability.”
Therefore, in the near and medium term, governments, organizations, and banks must work together to ensure that stability and growth factors that are particularly important to the national economy, such as payment transactions, have the highest priority in procurement. Of semiconductors. Its purpose is to take the initiative among chip manufacturers to create, demand and promote awareness of this priority.
Nevertheless, Ralph Wintergast is optimistic about this year:
“Adapting to a constantly changing and restricted environment is not a new field for us. We are fully prepared for this year. Through our commitment to maintaining close customer relationships, we are able to identify market trends and make changes in a timely manner. Quick response. However, after 2021, it is necessary to formulate a political route for long-term viable strategic choices to reduce dependence on non-European chip suppliers. Otherwise, the current bottleneck will persist, excessive price increases and supply shortages will It may become a permanent reality.”
