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: 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. From 1993 to 1994, there was a glut of chips and companies lost incentive to build new leading-edge factories. When the new generations came out, there were not enough factories to produce the new chips. An earlier chip famine might cause a slump in the market, which would result in fewer chips being manufactured. When the slump is over, the demand might grow too high for the companies to fulfill, resulting in a second shortage. New generation chips are difficult to produce due to manufacturing capabilities.