This page looks at the state of the semiconductor market. Semiconductors are essential components not only for electronic equipment, but also for automobiles, home appliances and a broad range of capital goods. The COVID-19 pandemic has raised the demand for consumer electronics and hence semiconductors. Supply disruptions are leading to shortages and this could have knock-on impact on broader manufacturing, where this critical component is not available. This is shown in the significant increase in lead times (the time between the initial order and delivery) recently on the left. Countries are already looking to increase their own production and reduce reliance on shipments from other countries. The right hand chart shows the installed capacity by region, with much of production still concentrated in Asia.