Sat. Nov 27th, 2021

How The Global Computer Chip Shortage Happened

How The Global Computer Chip Shortage Happened – Video

It’s not an overstatement to say that semiconductors power the modern world. They’re not only a key component of nearly every electronic device we buy and use — they also power the factories that make the electronic devices we buy and use. And now, there aren’t enough of them getting made. Here’s how the global semiconductor chip shortage got so bad, and what’s being done to fix it.

A chip shortage that started as consumers stocked up on personal computers and other electronics during the Covid-19 pandemic now threatens to snarl car production around the world.

GM said that it would extend production cuts in the U.S., Canada, and Mexico until the middle of March. They join a long list of major automakers, including Ford, Honda and Fiat Chrysler, which have warned investors or slowed vehicle production because of the chip shortage.

But it’s not just the automotive industry that’s struggling to get enough semiconductors to build their products. AMD and Qualcomm, which sell chips to most of the top electronics firms, have noted the shortage in recent weeks. Sony blamed the chip shortage for why it’s so hard to get a PlayStation 5 game console.

Chips are likely to remain in short supply in coming months as demand remains higher than ever. The Semiconductor Industry Association said in December that global chip sales would grow 8.4% in 2021 from 2020′s total of $433 billion. That’s up from 5.1% growth between 2019 and 2020 — a notable jump, given how large the absolute numbers are.

Semiconductors are in short supply because of strong demand for electronics, shifting business models in the semiconductor world that created a bottleneck among outsourced chip factories, and effects from the U.S. trade war with China that started under former President Trump.

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How The Global Computer Chip Shortage Happened


How The Global Computer Chip Shortage Happened – Youtube


43 thoughts on “How The Global Computer Chip Shortage Happened”
  1. I agree that covid is responsible for the shortage but I don't buy it that it's because of people starting to work from home or play more video games. There's a thing called stock. Every major company has it. If the shortage happened because of over-gaming and other tech activities, the increase in demand won't be just 6 or 8%. It must be at least doubled to affect and create this massive shortage. No. The shortage happened simply because all factories shut down at once, reduced employees, reduced working hours, reduced pretty much everything while the demand was increasing. Slowly but it was there. I also don't buy it that suddenly crypto miners are responsible for these problems. The big boom of crypto mining happened a decade ago. There was no shortage of anything. We are talking about billions of chips that didn't get produced during the lockdowns in 2019, which was nothing but a time bomb. While companies slowly returned to full production capacity, their entire stock and the stock of suppliers and retailers was empty. Now, for every produced chip there's a queue of at least 100 people waiting.. Whether it's for their new car, or new gpu, the queue is long. It reminds me of credit card loans. If you only pay the least suggested amount per month, you will never ever repay your credit. In fact, it will only get worse. Unless they increase production temporarily by at least 300-400%, this is not going away any time soon. It's been 3 years.

  2. Would it solve the shortage if they would share the technology to other companies to increase the number of companies creating more semiconductors?

  3. Wow companies sent the chip manufactures oversees and it helped them profit in the short run and now it's biting everyone in the ass. Man I guess it doesn't pay to be cheap

  4. TSMC will be taken over by communist China because Taiwan has no will to fight against them. While China is getting stronger, Taiwan reduced draft from 2 years to 4 months barely enough for basic training and more than half of them said they have no will to fight China. US must be prepared for this and ban TSMC with rest of Chinese companies from international trades. TSMC must give up their technology to the US company and close down their factories.

  5. World- why things are expensive?
    Answer- China isn't producing enough
    World-why shortages in world?
    Answer- China isn't producing enough.

  6. The good US of Anything has become far to much dependant stuff made in i.g. China. How did they let it get so far?!

  7. This is so much deeper than the report goes. This is why trump wanted to by Greenland, why China in west Africa is important, why being a nationalist isn’t anti-world racist, and why racist liberals created global warming. Get with the program people,

  8. The ill-fated numeric lally crush because command molecularly analyse through a wry quiet. utopian, waggish rhinoceros

  9. The chips are probably being sent to iran for their nuclear weapons program. Duhhh! that's why theres a shortage dont forget Democrats want WW3 and Nostradamus predicted WW3/an attack from a middle eastern country and remember Obama gave Billions of dollars to free so called prisoners from iran . Remember that I bet most of you dont know that. It was done illegally. so there ya go thanks to OBAMA we should look forward to WW3. THANKS OBAMA/AHOLE

  10. These supply shortage reports have caused a panic. Everyone I know started their Christmas shopping in early October, mostly buying new clothing on EBAY. I guess EBAY sellers generally sell inventory they already have and so aren't immediately affected by the supply shortage, although I'd guess even EBAY sellers will probably run out of inventory soon. Crazy stuff going on.

  11. Mining
    Mining factories are the issues.
    Imagine a basic mining room has at least a hundred PCs in it
    Let alone the ones with hundreds of thousands … so yeah

  12. Usa cannot make computer chips because american people too busy eating hamburger and discriminate against color people. When they no longer sell chips to usa, america will get on their knee and beg for mercy.

  13. These shortages are artificial in nature, it's a collusion by the auto industry to constrict supply and drive up prices. The chips aren't difficult to mass produce, they could produce millions a day but if you think this happened by chance you are super naive.

  14. I guess as long as CERN has what they need for their Hadron Collider. I can't imagine just how much they've put into that bad boy.

  15. We now know there is no shortage. Its artificial and being done by chinese communists to weaken and collapse the west.

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