The shortage of computer chips is affecting industries that rely on electronics. Some items that are expected to be in short supply are smartphones, televisions, games consoles, computers, and cars. Even washing machines and dog grooming equipment contain semiconductors these days!
What Is a Semiconductor?
Semiconductors are used to control the flow of electricity in a device. They are normally made from crystal. Many of the chips are made from sand, which contains a lot of silicon. The sand is purified and melted into cylinders called ingots. The ingots are sliced into thin discs and polished. The discs are printed with tiny circuits that contain electrical information, and cut into tiny chips. These chips are packaged and, finally, used in computers.
According to the Semiconductor Industry Association:
“Semiconductors … are made from pure elements, typically silicon or germanium, or compounds such as gallium arsenide … small amounts of impurities are added to these pure elements, causing large changes in the conductivity of the material.
Due to their role in … electronic devices, semiconductors are an important part of our lives. Imagine life without electronic devices. There would be no smartphones, radios, TVs, computers, video games, or advanced [medical equipment].”
Why Is There a Shortage of Chips?
Semiconductors take a lot of money and expertise to make – so it isn’t an easy business to get into. From design to manufacturing to transport, computer chips have a complex supply chain. This chain is easily affected by problems such as the COVID pandemic. Other issues have caused problems, too. A factory in Texas was shut down during bad winter storms, while in Japan, a fire caused delays at another factory.
China makes about one-third of semiconductors these days. High electricity costs in China, as well as trade disputes, have also affected the computer chip industry.
A Case Study: The Car Industry
The global chip shortage means fewer cars are for sale at new car lots.
North American carmakers cut production of more than a million vehicles because they didn’t have enough computer chips. These chips are used in various ways in cars – from engines to brakes to safety devices. In a nutshell, you can’t make a car without chips these days.
American auto companies aren’t the only ones affected. French manufacturer Renault said it expects to make 300,000 cars less than planned this year, due to the chip shortage. Overall, the car industry is expected to make 11 million fewer cars this year.
Since there aren’t many cars to sell, dealerships found they had too much staff. Around 70,000 new car salesmen have lost their jobs since the start of the COVID pandemic.
Fewer cars and salesmen have changed car buying. More people are buying cars online, instead of visiting a car lot. New websites have opened to sell vehicles and the pandemic has people more willing to buy over the internet. Many feel there is no need to spend the afternoon with a car salesperson when they can sit at home on their computer and buy the vehicle they want.
Manufacturers of semiconductors – the people who make the chips – aren’t very optimistic about things changing anytime soon and say the shortage could last into 2023.
Try a quiz based on this article
Along with common household items, the US is dealing with a shortage of computer chips as well.
Show the answer
True.
Computer chips are needed for many things like smart phones, computers, and even some __________.
Show the answer
Washing machines.
What are semiconductors?
Show the answer
Chips that control the flow of electricity.
What are many semiconductors made from?
Show the answer
Silicon.
Once the sand is purified and melted into cylinders, the material is then __________.
Show the answer
Sliced into discs and polished.
There is not a particular need for semiconductors today.
Show the answer
False.
Why are computer chips needed more now than they have been in the past?
Show the answer
All of the above.
Natural disasters, high electricity costs, and even the COVID pandemic have affected the supply of computer chips.
Show the answer
True.
What industry, as noted in the article, has been especially affected by the shortage of computer chips?
Show the answer
Automobile industry.
Fewer cars in the lots and fewer car salesmen have caused people to start purchasing new cars _______.
Show the answer
Online.
