Title: Explainer: Why is there a global chip shortage and why should you care? | Reuters
Headings: Explainer: Why is there a global chip shortage and why should you care?
Explainer: Why is there a global chip shortage and why should you care?
CARS
ASIAN SQUEEZE
WHAT’S BEING DONE ABOUT IT?

Content: RAM memory chips are seen in this illustration photo June 21, 2017. REUTERS/Thomas White/Illustration
(Reuters) - From delayed car deliveries to a supply shortfall in home appliances to costlier smartphones, businesses and consumers across the globe are facing the brunt of an unprecedented shortage in semiconductor microchips. The shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year, compete against the sprawling consumer electronics industry for chip supplies. Consumers have stocked up on laptops, gaming consoles and other electronic products during the pandemic, leading to tighter inventory. They also bought more cars than industry officials expected last spring, further straining supplies. Sanctions against Chinese tech companies have further exacerbated the crisis. Originally concentrated in the auto industry, the shortage has now spread to a range of other consumer electronics, including smartphones, refrigerators and microwaves. With every company that uses chips in production panic buying to shore up stocks, the shortage has squeezed capacity and driven up costs of even the cheapest components of nearly all microchips, increasing prices of final products. CARS
Automobiles have become increasingly dependent on chips - for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking. The crisis has forced many to curtail the production of less profitable vehicles.