BLUFThe demand for computer chips is due to increased world-wide demand and over-reliance on manufacturers in Taiwan and S Korea.
This article makes the following points:
- Covid-19 pandemic affected the availability of computer chips.
- Working from home resulted in an increased demand for smart devices.
- Devices needed to be easily connected and reliable.
- Demand for video and gaming increased demand for chips.
- Homeworking resulted in companies such as Apple, Qualcomm and Nvidia ramping up production.
- Covid-19 resulted in a plunge in car sales.
- Demand for cars soon picked up.
- Modern cars use a lot of computer chips.
- Taiwan and S Korea are the biggest producers of computer chips.
- Fire and power outages at semiconductor foundries affected supply.
- Tensions between the US and China has contributed to the low global availability.
- Chip production dominated by companies based in Taiwan and S Korea, such as Taiwan Semiconductor Manufacturing (TSMC).
- Over-reliance on Taiwan and S Korea has highlighted strategic vulnerabilities regarding production, intellectual property, and access.
- China is stockpiling chips.
- Jun 2021 The Verge The chip shortage will likely get worse before it gets better
- Jun 2021 Finabel The Shortage of Semi-Conductors and its Strategic Implications