Title: Chip shortage, explained: Why it's impacting car prices, tech items
Headings: The microchip shortage explained: How it's impacting car prices and the tech industry
The microchip shortage explained: How it's impacting car prices and the tech industry
Michael Liedtke, Tom Krisher
Is the pandemic to blame?
Are there other factors at work?
Why is the auto industry being hit so hard?
How are automakers dealing with the shortage?
Will this impact my ability to buy a new car this year?
Will other popular products be affected this year?
What will prevent another chip shortage?

Content: Are there other factors at work? Yes. Both Sony and Microsoft were preparing to release highly anticipated next-generation video game consoles for their PlayStation and Xbox brands, respectively, that required more sophisticated chips than ever. To add to the demand, wireless network providers are clamoring for chips to power ultrafast “5G” services being built around the world. Former President Donald Trump’s trade war with China probably didn’t help either. Some analysts believe the Trump administration’s blacklisting of Huawei Technologies prompted that major maker of smartphones to build a huge stockpile of chips as it braced for the crackdown. Why is the auto industry being hit so hard? Stay-at-home orders drove a surge in consumer electronics sales, squeezing auto parts suppliers who use chips for computers that control gas pedals, transmissions and touch screens. Chipmakers compounded the pressure by rejiggering factory lines to better serve the consumer electronics market, which generates far more revenue for them than autos. After eight weeks of pandemic-induced shutdown in the spring, automakers started reopening factories earlier than they had envisioned.