Why is there a shortage in the chip industry?

Why is the chip industry in short supply

Why is the shortage of the chip industry hitting carmakers and technology giants? From Washington to Brussels to Beijing, it has sounded an alarm. The crisis raises a basic question for policymakers, customers and investors: why can't we make more chips?

There is a simple answer and a complex answer. In short, manufacturing chips is very difficult and getting more and more difficult. Does it make many enterprises and even countries despair“ This is not rocket science - it's much more difficult. " An internal joke in the chip industry explains this.

The more complicated answer is that building semiconductor manufacturing facilities takes years, billions of dollars and a large technical reserve. Even so, if the technology of the chip company lags behind even a small part in the competition, it may lead to out.

This is why countries are facing such difficulties in achieving semiconductor self-sufficiency. In its latest five-year plan, China calls chip independence the top priority of the country, while US President Biden is preparing to establish a safe us supply chain by revitalizing domestic manufacturing. Even the EU is considering measures to make its own chips. We don't know how determined governments are, but we know that it is really difficult to succeed.