The global shortage of chips continues to hamper companies around the world, from vehicle manufacturers to mobile phone manufacturers, as well as other industrial, commercial and consumer producers. Harmful weather conditions are now contributing to a struggling supply chain that has already seen its share of pandemics, military action and economic turmoil.
The global chip shortage problem is complex, with multiple dimensions, says Elias Eliadis, senior director of strategy and transactions at business consulting services provider EY. “Most industry experts would agree that climate change has an effect on chip production, requiring a highly controlled manufacturing environment, a reliable supply of ultrapure water (UPW), and stable environmental conditions, such as temperature and humidity.
Weather conditions can affect chip production and distribution in multiple ways. “Water quality issues, or shortages, can affect manufacturing yields and disrupt factory operations,” says Eliadis. Cold weather can cause power outages or delay the transportation of raw materials and finished goods. “Flooding can cause factories to close. [with] a prolonged impact on production,” he adds.
