Title: There's a global shortage of computer chips – what's causing it? | New Scientist
Headings: There's a global shortage of computer chips – what's causing it?
There's a global shortage of computer chips – what's causing it?
What is causing the shortages?
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Was there any backup stock of computer chips?
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Why can’t chip manufacturers just increase output to meet demand?
How will this affect me?
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Which manufacturers are affected?
How long will it last?
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Content: The Semiconductor Industry Association (SIA) says that chip sales in January 2021 hit $40 billion, which is up 13.2 per cent on the same month last year. Now car sales have picked up again and the result is that companies across several industries are fighting to get priority in factory order books. Was there any backup stock of computer chips? Many companies operate with low stock levels to keep costs down and are now rushing to replenish supplies. Supply chains are stressed or broken and nobody knows what to expect. One chip-maker told The Washington Post that car company executives were telling him: “ You’re killing me. You need to make more.” But semiconductor factories have limited capacity, and building new factories takes massive investment and often several years. Chip-makers also have incentive to focus their efforts on smartphone and tablet chips rather than on the older technology used in cars which has lower profit margins.