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: The pandemic prompted chip factories to start shutting down early last year, particularly overseas, where the majority of the processors are made. By the time they started to reopen, they had a backlog of orders to fill. That wouldn’t have been as daunting if chipmakers weren’t then swamped by unforeseen demand. For instance, no one entered 2020 expecting to see a spike in personal computer sales after nearly a decade of steady decline. But that’s what happened after government lockdowns forced millions of office workers to do their jobs from home while students mostly attended their classes remotely. 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.