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What's Next After Chip Shortage?

Tech Opinion by RK Sharma, Published by NRI Herald Australia 25 October 2021

Is "Magnesium" the new challenge for the World after Semiconductor Chip shortage?

You must have been hearing about global shortage of Semi-Conductors that resulted in Electronic Chip shortage. Electronic Chips, an electronic component, are essentially now a mandatory component in every single modern day device/equipment that uses electricity and perform certain functions.

However, automotive is one of the biggest user of semiconductor components. Can you Imagine the Chip Shortage is going to cost as high as 200 Billion dollars LOSS just to Automotive Industries?

The question is What’s the Next Challenge?

The answer could be Magnesium… Why?

  1. It is one of the major ingredients to make Al Alloy that makes our Drivetrains, Car/Automotive bodies, and every other lightweight structural material uses Aluminum Alloy.

  2. Because World has made itself vulnerable to keep the majority of eggs in one basket if not all. i.e. China, YES, china 85% of World’s Mg comes from China.

  3. Due to Power Shortage China has shut down 70% of Mg Smelters until Year-End, and perhaps no signs of opening it until the mid-2022

  4. The supply-demand dynamics are already reflecting the problem in Europe. In the month of October alone, the per tons price of magnesium has surged over 75%

  5. Another big reason WHY World needs to completely reform its strategy and get rid of over-dependencies on China.

  6. If we reflect into our World History a Country governed without any strong opposition potentially causes remarkable damages to the Society & World, and its effects last much longer than post Nuclear bomb attack? Which are these countries?

  7. Time is to rethink, recalibrate or rather transform the way we work our Sourcing, Supply Chain, IP, Diplomacy; & most importantly “implement the minimum common rules (Population, Pollution & Food) for all the countries”. No country should have absolute freedom to do injustice in any form

  8. The True Meaning of Globalization & Democracy isn’t achieved until the Weakest of Weak in the World, be it – common man, Organization, Community or a Country feels threatened in any form by anyone.

Do you see that UN & other super powers, and the World has witnessed yet are absolutely benighted on critical Global issues? History teaches us that a local issue is not so, a local issue then why these highly paid, well authorised diplomats & Global Leaders are acquiescent.

Local issues are proven to change the World Demographics, and has interminable impact on the entire World, be it - Syria, Pakistan, Afghanistan, China, Pandemic, Financial Crisis, Corruption, Pollution and so on.


This article is written by Ram Kumar Sharma, is Certified Value Specialist from Society Of American Value Engineers.

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