What is Causing the Global Chip Shortage? – Technology Magazine


nology. The demand for chips has grown dramatically from the time of the Covid disease. Why aren’t there more of the chips produced?

If you imagine the term “smart,” think semiconductor chip. The chips used deal with digital information. As technology advances and more sophisticated, the use of semiconductors has ramped up. The chips are practically ubiquitous. They charge everything, including your phone or computer, as well as your new car. These smart chips are expensive and are difficult to make. Manufacturing facilities can take years to create and are costly in billions dollars. The majority of the expense comes from the equipment utilized to manufacture semiconductors.

South Korea and Taiwan produce most semiconductor chips, and The Taiwan Semiconductor Manufacturing Company is responsible for nearly 25% of the chips. If anything happens in that particular region which delays production, then a major bottleneck is in place. In turn, the global economy suffers. A shortage of U.S. truck drivers has contributed to this bottleneck.

Many experts believe that older chip technology is being employed by companies that make smart products But increasing U.S. production will be required to keep up with worldwide demand.