Global Chip Shortage: A Worldwide Crisis

The COVID-19 pandemic turned a global shortage of chips into a crisis at the beginning of the pandemic that led to many companies withdraw their chip orders in in anticipation of what was expected to be a significant blow to the world economies. 

However, when lockdowns called for people to stay at home, online business skyrocketed as people purchase computers for their home offices and electronics devices to keep active and gaming devices to be entertained during the pandemic.

Moving on to that, it accelerated the pace of digitalization once industries realized the demand for electronics had only stalled temporarily and was now accelerating, they had one tiny problem – there weren’t enough chips for new orders. 

The world is deficient of chips, and it’s a BIG problem.

Currently not only automotive industry is dealing with semiconductor chip shortage. This issue is flowing throughout the international chip shortage as well. 

Chips can be found in almost every product we use. Chips can be found in our phones, computers, TVs and even chips are uses to power factories to function and build products. 

Hence, there’s a high demand in the market. 

So, why isn’t that demand being met?

There are a variety of reasons for this, beginning with the COVID-19 pandemic. 

Click here to watch the video. (Sources: IE)

The pandemic increased the demand for electronic products. People were bored at home, so they began ordering many devices, and chip manufacturers were unable to keep up.

Chip manufacturers use large amounts of ultra-pure water to clean their factories and wafers before beginning the chip-making process. 

This significantly reduces the ability to produce new chips when there is no water readily available.

So, how are companies dealing with all these shortages? By getting creative, adapting, and growing. Tesla, for instance, rewrote its own vehicle software to support alternative chips.

However, will these solutions work? 

Stay tuned with Caricarz!