why are computer chips in short supply

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COVID-19 pandemic

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  • Why is there a chip shortage?

  • The chip shortage is the result of a perfect storm of huge demand and limited supply. While consumers may be noticing the chip shortage most acutely when it comes to gadgets, the origins of the current shortage can be traced back to the automotive industry.

  • Why are there so many computer chips in cars?

  • This included huge numbers of computer chips, because modern cars contain dozens of them to control everything from braking to steering and engine management. According to research firm IHS Markit, 672,000 fewer vehicles than usual will have been made in the first quarter of 2021 as a result.

  • What are chips and where are they used?

  • These are also known as chips, semis, and can be found in electronic devices such as computers, smartphones,appliances,gaming hardware and medical equipment. These devices find widespread use in almost all industries especially in the automobile industry. 2. Why Is There A Shortage?

  • Why are chip manufacturers facing increased demand?

  • This forced chip manufacturers to shift their focus to other areas, such as computer equipment and mobile devices, which spiked in demand with more people working remotely. As 5G and cloud-based services grew, more chips were needed for communication platforms like Zoom and video streaming services.

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