Title: Chip shortage - Wikipedia
Headings: Chip shortage
Chip shortage
Contents
Introduction
Cases of shortages
2020–21 global chip shortage
Causes
1986 chip pact
Results of shortages
References
External links

Content: Chip shortage - Wikipedia
Chip shortage
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Decrease in integrated circuit availability
A chip shortage, also referred to as semiconductor shortage or chip famine, is a phenomenon in the integrated circuit (chip) industry when demand for silicon chips outstrips supply. Contents
1 Introduction
2 Cases of shortages
2.1 2020–21 global chip shortage
3 Causes
4 1986 chip pact
5 Results of shortages
6 References
7 External links
Introduction
Chip shortage typically occurs when there is some sociological or physical change that prevents certain chips from being produced in large enough numbers to satisfy demand. A severe case of chip shortage occurred in 1988 after a pact between American and Japanese chip manufacturers resulted in severely reduced production. Changing to newer production methods also causes chip shortages as the new factories are not built quick enough to meet the demand for the newer chips. An example was the shortage of smart card chips in 1999, another was during the rationing of other types of chips in 2004. The 2011 Japanese earthquake led to a period when it was difficult to source all the parts needed for various systems. Chip shortages can have a major effect on the electronics industry where manufacturers change their sourcing of chips and suffer major loss of profits, such as when PC manufacturer Gateway switched from Intel to AMD microprocessors in 2000. Some manufacturers may find themselves having to redesign their products to take account of the shortage of certain chips, or have to leave design options open to allow alternative chips to be incorporated into the design. Cases of shortages
In 1988 there was a shortage due to high demand. Workers at seven Hitachi corporation factories had to work through their summer vacations to meet demand.