3 Companies Getting Whacked by the Global Semiconductor Shortage
The global semiconductor shortage came about due to challenges manufacturing new chips, pandemic-related disruptions, the secular growth of new technologies, and elevated demand for consumer electronics as more people stayed at home. The world's top chip foundries are currently expanding their production facilities to deal with that perfect storm, but those bottlenecks won't get wider anytime soon.
As a result, any company that depends on the timely production of new chips could face supply constraints this year. Let's examine three companies that recently cited the chip shortage as a major headwind, and how much the crisis could throttle their growth this year.
At the end of April, Apple (NASDAQ: AAPL) posted a strong second-quarter earnings report that easily beat analysts' estimates. But during the conference call, CFO Luca Maestri warned that "supply constraints" would reduce its third-quarter revenue by $3 billion to $4 billion.
Source Fool.com
