Hedging Against Global Supply Chain Shortages

By Rebekka Boekhout

August 9, 2021

COVID-19 has had an enduring, adverse impact on global supply chains. What started as a hand sanitizer and toilet paper shortage has evolved into a multifaceted supply chain breakdown affecting numerous manufacturing pipelines. At the heart of these disruptions is something small and unsuspected by those unaccustomed to tech design: semiconductor chips.

Semiconductor memory chips store data on computers and storage devices. They play a pivotal role in various technologies; everything from smartphones to cars to, you guessed it, container farms need semiconductors to function. A shortage of something this essential can upend the market as we know it and slow the pace of indoor agriculture’s growth.

Jumpstarted by pandemic mayhem, supply chain failures have become a consistent cause for concern for businesses across the globe. How has this issue become the norm in the current business landscape? Well, the answer comes down to simple economics: supply cannot meet demand.[1]

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