The 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 AppleQualcomm 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.