Did you know that there is an international chip shortage? Indeed, the world does not have enough chips, and it’s a real problem. Chips can be found in almost every product you use.
They are in your phone, your computer, and your TV and even power the factories that make all of these things. As a result, it is understandable that there will be a high demand for them. So, why isn’t that demand being met? There are several reasons starting with the COVID-19 pandemic.
There are a variety of reasons for this, beginning with the COVID-19 pandemic. The pandemic increased the demand for electronic products. People were bored at home, so they began ordering a large number of devices, and chip manufacturers were unable to keep up.
Then, there was the fact that the U.S. government placed restrictions on China’s biggest chip manufacturer: Semiconductor Manufacturing International Corporation (SMIC). This trade war prevented SMIC from selling chips to some of the world’s largest corporations.
Finally, there were the unrelenting droughts and fires that plagued the country. 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. Will these solutions work? How long will this chip shortage last and what can be done to alleviate it? We answer all these questions and more in this video.