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videos | IST

Explained: Semiconductor shortage and its impact

Semiconductor is a material that is made of silicon used in electronic circuits, integrated circuits, and microchips.

Semiconductor is a term that has been dominating news headlines, especially in the context of auto sector.
What is semiconductor?
This is a material that is made of silicon used in electronic circuits, integrated circuits, and microchips. It is used in almost every electronic device we use these days -- from smartphones to LED television sets to laptops, iPads, and you name it. It is also used in cars and two-wheelers.
Why semiconductors are in news now and why are they so important?
Semiconductors have become a major issue for automobile manufacturers worldwide. From Tesla, Ford to Hyundai, Maruti, Mahindra - every automaker has been impacted by this chip shortage.
On average, there are at least 80-120 microchips in a car and if it is a high-end luxury vehicle like BMW that could even have up to 150 microchips or electronic control units, and each of these ECU uses a semiconductor. It is also used in high-performance motorcycles.
Watch accompanying video for more.