Title: What's causing the chip shortage affecting PS5, cars and more?
Headings: Why there’s a chip shortage that’s hurting everything from the PlayStation 5 to the Chevy Malibu
Why there’s a chip shortage that’s hurting everything from the PlayStation 5 to the Chevy Malibu
Key Points
A huge boom in electronics sales
Business shift to outsourcing slams factories
Trump’s trade war

Content: Not only leading nodes but legacy nodes,” referring to chip manufacturing technology. Cars now include scores of tiny chips, many of which perform functions like power management. Cars also use a lot of microcontrollers, which can control traditional automotive tasks like power steering, or are the brain at the heart of an infotainment system. Car makers also usually use “just-in-time” production, which means they avoid having extra parts in storage. “The problem is even if that 10-cent chip is missing, you can’t sell your $30,000 car,” Gaurav Gupta, semiconductor analyst at Gartner said. “If the chip that powers the in-car dials or automatic braking are delayed, then so will the rest of the vehicle,” Bryce Johnstone, director of automotive segment marketing at chip designer Imagination Technologies previously told CNBC. Now the automotive industry is realizing it’s a lower priority than the electronics companies at the foundries. In 2020, only 3% of TSMC’s sales were from automotive chips, compared to 48% for smartphones. Tech companies are “the volume guys. They have higher margins.