Why is there a computer chip shortage? Cars, tech face supply-chain issues - Business Insider

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Here's why there's a global computer chip shortage that is slamming automakers during the pandemic

the Biden administration to intervene in what has become a global computer chip shortage.

"We believe that the incoming administration can continue to play a helpful role in alleviating the worst impacts of the shortage on American workers," the senators wrote in a letter.These chips have become a crucial part of the supply chain. Car companies like Ford use them to power the modern-day technology in their vehicles — the engine, Bluetooth capabilities, seat systems, collision and blind-spot detection, transmissions, WiFi, and video displays systems all run on the chips.

And the silicon components are what power the high-tech gadgets from companies like Apple that we use every day. The upgraded technology in gaming consoles and 5G smartphones in particular require a lot more power, and therefore rely more on chips than previous generations.

 

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Here's why there's a global computer chip shortage Since March, when the pandemic set in, consumer demand has surged for vehicles and for devices like smartphones and gaming consoles that people can use for entertainment while stuck at home.

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