What is Causing the Global Chip Shortage? – Technology Magazine

If consumers are demanding technology with larger chips, how come there aren’t the chips being manufactured?

Imagine a chip from a semiconductor whenever you think of the device as “smart”. Anything that processes information digitally uses one of these chips. The use of semiconductors is growing as technology becomes more sophisticated. The chips are literally everywhere. They’re in use to make everything run: your phone computers, your laptop and even the latest car. One of the reasons is the cost and difficulty in the process of making these chips. The manufacturing process is expensive and could cost millions of dollars. They require a lot of time to construct. Most of the cost comes in the form of the tools that are utilized to manufacture semiconductors.

South Korea and Taiwan produce the bulk of semiconductor chips, and The Taiwan Semiconductor Manufacturing Company makes nearly 25%. If anything happens in the region of concern that creates delays, a major bottleneck will be in place. The rest of the world suffers from the result. Conversely, a shortage of U.S. truck drivers has added to the bottleneck.

Even though manufacturers of smart gadgets have begun using chips that are older Experts believe increasing U.S.-based production is essential to satisfy demands across the globe. oupv3qq2y3.