5 reasons why the world is running out of chips

Did you know that there is an international chip shortage? Indeed, the world does not have enough chips, and it’s a real problem.

Chips can be found in almost every product you use. They are in your phone, your computer, and your TV and even power the factories that make all of these things. As a result, it is understandable that there will be a high demand for them.

So, why isn’t that demand being met? There are several reasons starting with the COVID-19 pandemic. There are a variety of reasons for this, beginning with the COVID-19 pandemic.

The pandemic increased the demand for electronic products. People were bored at home, so they began ordering a large number of devices, and chip manufacturers were unable to keep up.

Then, there was the fact that the U.S. government placed restrictions on China’s biggest chip manufacturer: Semiconductor Manufacturing International Corporation (SMIC). This trade war prevented SMIC from selling chips to some of the world’s largest corporations.

Finally, there were the unrelenting droughts and fires that plagued the country. Chip manufacturers use large amounts of ultra-pure water to clean their factories and wafers before beginning the chip-making process.

This significantly reduces the ability to produce new chips when there is no water readily available.

So, how are companies dealing with all these shortages? By getting creative, adapting, and growing. Tesla, for instance, rewrote its own vehicle software to support alternative chips.

Will these solutions work? How long will this chip shortage last and what can be done to alleviate it?

We answer all these questions and more in our video.

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#engineering

50 Comments

  1. @kevinken2576 on December 22, 2023 at 7:33 pm

    oh



  2. @sciuresci1403 on December 22, 2023 at 7:34 pm

    Sounds like it was a bad idea to rely solely on a few companies for supplying such a vital product.



  3. @sujithan6100 on December 22, 2023 at 7:35 pm

    Clearly Explained!



  4. @tacky4237 on December 22, 2023 at 7:38 pm

    A raspberry Pi, a budget PC that costs around 10 dollars, is 10x the price.



  5. @black_baron_net on December 22, 2023 at 7:38 pm

    ☠BLACK BARON☠ 2:43 Maybe it’s time to re-think the word "Consuming". Honestly, consumers don’t need a new computer model or smartphone every year. And so many new cars are standing somewhere, parked without having a driver.



  6. @krinodagamer6313 on December 22, 2023 at 7:41 pm

    They want y’all to think it’s a shortage ughhh no robots are being built



  7. @nyfan9215 on December 22, 2023 at 7:43 pm

    Ty china.
    Haha



  8. @Cielzerozx004 on December 22, 2023 at 7:43 pm

    And add the scalpers making it worse. What a time it is now that we live in.



  9. @bobdooly3706 on December 22, 2023 at 7:43 pm

    Chip shortage is due to a drastic , world wide shortage of high purity sand & quartz which is the key ingredient to make silicon chips.



  10. @apidas on December 22, 2023 at 7:46 pm

    lmao moore’s law



  11. @dipiti8739 on December 22, 2023 at 7:47 pm

    Governments do the damages by having uneducated leaders running the Country.



  12. @maxtwentynine5968 on December 22, 2023 at 7:47 pm

    No shortage on chips for electric vehicles. Wake the fuck up



  13. @chandrashekareluri on December 22, 2023 at 7:52 pm

    India 🇮🇳 can manufacturer better then China 🇨🇳 with " quality ", ethics and skill workers. We can expert less price products from 🇮🇳. several company’s like Dell IBM EY tayota Bosh …ect (around 15000 international companys) are operational in India with out any problem and skilled labor. Even Government promoting new companies with incentives and some times free land allocation. In India for rapid transport 5 DFC are under construction 27 8 line national Hiways are adding in 2022.. Thanks to government😍



  14. @rookforce1 on December 22, 2023 at 7:52 pm

    I knew T-rump had something to do with this F Up… that guy was a disaster who knows nothing about business.



  15. @LuxuriantCarrot on December 22, 2023 at 7:53 pm

    yooo imamlucid collab?



  16. @BC-iz8gt on December 22, 2023 at 7:54 pm

    I have a solution stop making the whole world depended on a couple of factories in China



  17. @babisz8640 on December 22, 2023 at 7:54 pm

    People are sheep and would buy any shit media sells them. Reminds me a story were chinese buyers/households were focused as "responsible" for cheese price rising around 15-20% in EU back at 2000’s or something when infact milk products are non existant in far east food habits.
    And thats how ladies and gentlemen the ongoing financial war against China affects western consumers and tax payers depending on the target at hand ie your pocket (chease) or China sales (m-chips)



  18. @92waystodeath on December 22, 2023 at 7:54 pm

    Newer bought a new pc or a tv or anything of that sorts, stop wasting your money people you can live without this shit. Fu*k amish still exist for f sake



  19. @ryans413 on December 22, 2023 at 7:55 pm

    My cars almost 20 years old my shoes not electronic but they are 3 years old my tv is 10 years old but really all I want is a PS5 it’s so frustrating that I probably won’t get one until 2023 3 years after the dam launch I’ll be 33 by then so stupid



  20. @ozgurKurt1938 on December 22, 2023 at 7:56 pm

    guys just dont buy anything electronic or everything will be realy worse



  21. @techmana4257 on December 22, 2023 at 7:56 pm

    seems like a Y2K like self created dooms day
    https://www.youtube.com/watch?v=0ccF1GcFKYY



  22. @jesusbarba998 on December 22, 2023 at 7:58 pm

    The last 2 "reasons" for the chip shortage were not reasons at all. "Reason 4: Real World Consequences" and "Reason 5: The Solution: Adapt and Grow"



  23. @BC-iz8gt on December 22, 2023 at 7:59 pm

    So my question is why is there only a very few making chips while I have multiple factories making chips



  24. @Carlin321 on December 22, 2023 at 7:59 pm

    I am proposing a good solution which is the replacement of silicon by soft diamonds. This link is showing how we produce soft diamonds whuch cost less than silicon https://youtu.be/sqgP-8Wd_A0



  25. @jeffstrong4580 on December 22, 2023 at 8:00 pm

    US Commerce Dept proved that chip shortage was caused by Taiwanese TSMC. Taiwanese have been bad mouthing S Korean companies to win the US contracts with chip production. Same dirty play by communist China. TSMC was also using Chinese middle man to dry supplies to increase prices.



  26. @dickheadrecs on December 22, 2023 at 8:02 pm

    i think the voiceover is missing some chips



  27. @markletts8802 on December 22, 2023 at 8:07 pm

    Seems like a good thing



  28. @JakubAdamus on December 22, 2023 at 8:08 pm

    I preordered iPhone 13 Pro and got it on day it was released in Slovakia. No problems with chips. I assume Apple produces own chips, right?



  29. @tahasinemon3585 on December 22, 2023 at 8:11 pm

    😭😭😭😭



  30. @Johndoe-nx1uz on December 22, 2023 at 8:11 pm

    Take global elites out of power and all shortages will end



  31. @slowjamcdub on December 22, 2023 at 8:12 pm

    We need these chip making factories in the USA!!!!! 🇺🇸👍🇺🇸👍🇺🇸👍🇺🇸👍🇺🇸



  32. @uhadme on December 22, 2023 at 8:12 pm

    Work quicker.
    Build more square miles. UMM
    Employ more quick workers, and machine.
    Capt Doug Obvious Genius



  33. @ho_ody8492 on December 22, 2023 at 8:12 pm

    basically tech companies were like: AAAAAAAAAA



  34. @cleanguy2822 on December 22, 2023 at 8:14 pm

    Everyone who knows there faster than that guy who got the ps5 first at the end “fuck”



  35. @sshifa6710 on December 22, 2023 at 8:15 pm

    So THIS is why I don’t get enough chips at shops



  36. @hardone77ss on December 22, 2023 at 8:16 pm

    Why dont say just China war trade causing this problem, no need to lie ppl



  37. @cool7654321 on December 22, 2023 at 8:18 pm

    so you’re telling me, buy a new car now as it might even go up in price due to a car shortage?



  38. @cosminogloocosy1154 on December 22, 2023 at 8:19 pm

    Stop producing " planned obsolescence" products!



  39. @Zhongliiiii on December 22, 2023 at 8:19 pm

    oh its technology chips not food chips got it



  40. @sveddish on December 22, 2023 at 8:20 pm

    All this tells me is that the West (Europe & NA) need to bring back all production from Asia. The pandemic proves that globalism has failed.



  41. @noreverse1152 on December 22, 2023 at 8:20 pm

    This vid is a winded way to say that all industries using chips, everywhere, are depending on supply controlled by China.



  42. @2tell99 on December 22, 2023 at 8:21 pm

    Maybe shortages of regular chips now
    Making billions of nano chips to go into the hand or foread
    For a new form of ID!



  43. @screenapple1660 on December 22, 2023 at 8:21 pm

    Now, I know why the US sanctioned China. China was stealing chips to mass produce for communists. TSMC has more chips but slow production. Interesting.



  44. @brokernaples on December 22, 2023 at 8:22 pm

    After 10 seconds intro for 1st graders I had to stop this video



  45. @gaby300470 on December 22, 2023 at 8:23 pm

    Deeply analyzing this current situation and taking into account all the different variables in place, I am very concerned about the increase in price of Doritos.



  46. @junovicz on December 22, 2023 at 8:23 pm

    This is a Wikipedia article xd



  47. @OLIV3R_YT on December 22, 2023 at 8:24 pm

    Ahh, the famous GPUs by Nivea 🙂



  48. @maulana_clan on December 22, 2023 at 8:25 pm

    Just try to make them from other ingredients beside potatoes.



  49. @TheClaudio7078 on December 22, 2023 at 8:27 pm

    And now add the wor on Ukraine and lack of neon gas



  50. @sfkingalpha on December 22, 2023 at 8:31 pm

    "ni-vidia"