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: Sony blamed the chip shortage for why it’s so hard to get a PlayStation 5 game console. VIDEO
3:04
03:04
How the automotive chip shortage affects the supply chain
The Exchange
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. A huge boom in electronics sales
The Covid-19 pandemic has spurred demand for consumer electronics. The first wave involved people buying PCs, monitors and other gear for working or going to school remotely. Then, last fall, home entertainment gadgets like game consoles, TVs, smartphones and and tablets started flying off the shelves. Living room with a Sony PlayStation 5 home video game console and DualSense controller alongside a television, taken on Novemebr 3, 2020. Phil Barker | Future Publishing via Getty Images
PC sales were up 4.8% in 2020 to 275 million units, with over 10% growth in the holiday season, according to Gartner data.