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: There's a global shortage of computer chips – what's causing it? | New Scientist
There's a global shortage of computer chips – what's causing it? Technology 18 March 2021
By Matthew Sparkes
Silicon wafers being transported in clean rooms at the GlobalFoundries semiconductor plant in Germany
Liesa Johannssen-Koppitz/Bloomberg via Getty Images
The world is experiencing a computer chip shortage due to a perfect storm of problems including a global pandemic, a trade war, fires, drought and snowstorms. It has coincided with a period of soaring, unprecedented demand – in January alone, chip sales reached a record $40 billion. Chips are now in everything from watches to fridges and your car probably has several dozen. Manufacturers simply can’t produce them fast enough. What is causing the shortages? Advertisement
The covid-19 pandemic caused an initial slump in car sales of up to 50 per cent, because few people were travelling anywhere and confidence in the economy was low. Car companies reacted by slimming down manufacturing and reducing orders for parts. This included huge numbers of computer chips, because modern cars contain dozens of them to control everything from braking to steering and engine management.