You’ve most likely heard this story recently, and probably multiple time: the world is at present experiencing a scarcity of microchips.

Picture credit score: LiveWireInnovation/Wikipedia/CC BY-SA 3.0

Have you ever questioned why is that this occurring? Isn’t our economical system ‘completely balanced’, in order that it may keep away from any destructive points with the manufacturing provide? Nicely, the issue is extra sophisticated than we may have anticipated earlier than it occurred.

There have been a number of circumstances that led to a robust improve in demand for electronics merchandise. The primary cause – you might have guessed accurately – was the COVID-19 pandemic. When persons are bored whereas staying at house, they begin shopping for completely different devices and home equipment. And when this occurs on a worldwide scale and in every single place directly, makers of digital parts and end-user merchandise battle to maintain up with the elevated demand.

So what had been the opposite causes that led us to a worldwide scarcity of chips? How corporations are coping with this subject? The next video presents a short however concise rationalization: