SNS: What’s Driving the Global Chip Shortage

SNS: What’s Driving the Global Chip Shortage

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In This Issue
Vol. 26 Issue 7

What’s Driving the Global Chip Shortage

  • The Chip Wars
  • TSMC: The Global Chip Market Chokehold

Carmakers are raising a ruckus. Just as demand for autos was beginning to pick up again, global automakers like Ford, Fiat-Chrysler, Toyota, Subaru, Volkswagen, and Nissan have been forced to slam on the brakes, laying off autoworkers and shuttering factories.

The problem: There aren’t enough chips to supply the auto industry. There’s a global shortage.

The reason for this shortage depends on who you ask. Most media reports would have you believe it’s the result of the pandemic. Grumbling automakers blame poor planning by auto parts suppliers, which are responsible for preordering chips and integrating them into parts to fulfill automakers’ orders.

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