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: April 2021)
Main article: 2020–2021 global chip shortage
The COVID-19 pandemic caused disruptions in supply chains and logistics which, coupled with a 13% increase in global demand for PCs owing some countries' shift to a stay-at-home economy, impacted the availability of key chips necessary for the manufacturing of a broad swathe of electronics. The pandemic's impact on the manufacture of semiconductors in South Korea and Taiwan was cited as a cause for the shortage, with constrained supply impacting industries as broad as console gaming and the automotive industry. In February 2021, market analysts IHS Markit were cited by the BBC as forecasting the impact of the dearth to last through to the third quarter of 2021; lead-times on chip supply at this time had already extended to 15 weeks, the longest lead-time since 2017. By April 2021, lead-times for semiconductors from Broadcom Inc. had "extended to 22.2 weeks, up from 12.2 weeks in February 2020." At the end of Q1 2021, used car prices were increasing in value due to the demand from both economic recovery, as well as the chip shortage. Some cars increased as much as 10% in Q1 . Causes
The 1986 U.S.-Japan semiconductor trade pact was designed to help U.S. chip manufacturers compete with Japanese companies. This resulted in severe cuts in Japanese production A 1993 DRAM chip famine was caused by a factory explosion at the factory which produced 60% of the world's supply of resin used in chips.