Tuesday, June 25, 2024
NewsChip Shortages To Last Through Most of 2021

Chip Shortages To Last Through Most of 2021

Demand in all industries for semiconductors is so strong that it will take months before producers meet it


  • Cisco predicts a least six months of shortages.

  • The US will invest heavily in semiconductor production in the near future.


While we report on the effects of the global chip shortage on the auto industry, it is certainly not the only business that is feeling the crunch. These chips go in virtually everything we buy and use. The issue stems from predictions of lower demand for products last year as the pandemic hit. As we know, the opposite happened.

Ford Extending Microchip Factory Closures Including F-150 Plant

This “crisis” has hit industries hard over the last four to six months. Automakers have been forced to idle plants for weeks because of this shortage. This issue has become big enough that US President Joe Biden is urging business leaders to make the country a world leader in computer chips, according to BBC.

The Semiconductor Industry Association reports that 75% of global manufacturing capacity is in East Asia. Given that the US is in a trade and technology war with China, the White House says ship production is “a top and immediate priority”.

Cisco chief Chuck Robbins says: “I think that it doesn’t necessarily matter where they’re made, as long as you have multiple sources.” One source will be Intel which has announced a $20bn plan to expand production, notably in Arizona.

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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