5 Reasons Why the World is Running out of Microchips


You have probably heard this story lately, and most likely more than one time: the world is currently experiencing a shortage of microchips.

Image credit: LiveWireInnovation/Wikipedia/CC BY-SA 3.0

Have you wondered why is this happening? Isn’t our economical system ‘perfectly balanced’, so that it could avoid any negative issues with the production supply? Well, the problem is more complicated than we could have anticipated before it happened.

There were several circumstances that led to a strong increase in demand for electronics products. The first reason – you may have guessed correctly – was the COVID-19 pandemic. When people are bored while staying at home, they start buying different gadgets and appliances. And when this happens on a global scale and everywhere at once, makers of electronic components and end-user products struggle to keep up with the increased demand.

So what were the other reasons that led us to a global shortage of chips? How companies are dealing with this issue? The following video presents a brief but concise explanation: