As the global chip shortage disrupts industries from home electronics to autos, a few small Japanese suppliers are stepping in to meeting the ballooning demand.
Staying at home during the pandemic is fueling increased purchases of laptops, smartphones and games, which in turn has led to a shortage of semiconductors used in other industries. Large automakers have been forced to cut production — globally, the sector could lose $60 billion in sales in 2021 as a result, according to IHS Markit.
"Chip suppliers are doing well because orders of automotive and large household appliance chips are expanding,” said Shoichi Arisawa, an analyst at Iwai Cosmo Securities Co. In addition, the auto sector is embarking on a long-term shift to add more high-performance chips for 5G wireless and autonomous driving systems.