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: 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. General Motors Co <GM.N > and Ford Motor Co are among the big carmakers who said they would scale down production, joining other automakers including Volkswagen AG, Subaru Corp, Toyota Motor Corp and Nissan Motor Co.
A shortage of auto semiconductor chips could impact nearly 1.3 million units of global light vehicle production in the first quarter, according to data firm IHS Markit. IHS said a fire at a Japanese chip-making factory owned by Renesas Electronics Corp, which accounts for 30% of the global market for microcontroller units used in cars, has worsened the situation. Severe winter weather in Texas has also forced Samsung Electronics Co Ltd, NXP Semiconductors and Infineon to shut down factories temporarily. Infineon and NXP are major automotive chip suppliers, and analysts expect the disruptions to add to the shortfalls in the ailing sector. ASIAN SQUEEZE
At the root of the squeeze is the under-investment in 8-inch chip manufacturing plants owned mostly by Asian firms, which means they have struggled to ramp up production as demand for 5G phones and laptops picked up faster than expected.