Examining the microchip shortage through a Paraqeet lens
July 1, 2021
Thanks to the global pandemic, supply, demand and distribution are completely out of whack. We’ve all witnessed this — most famously with last year’s toilet paper shortage. And even as the world is starting to reopen, we keep uncovering more industries that have been gravely affected by COVID-19. That includes the microchip industry.
The unforeseen microchip shortage is especially sobering because of how much our society relies on these tiny silicon wafers. Computer chips are used in countless products — from cars and smartphones to washing machines and video game systems — so, naturally, all of these industries are affected. It’s the textbook definition of supply and demand: Supply is greatly reduced, so prices skyrocket.
Manufacturers are having trouble obtaining supplies of semiconductors, which delays production and delivery and, in turn, drives up prices for consumers. Lockdown living didn’t help, as carmakers cut back on microchip orders, while tech companies snatched up much higher quantities to feed an increased consumer demand for electronics.
That’s exactly the conversation being held on Twitter right now, and Paraqeet helps to make sense of it. We started by using the search terms “microchip” and “shortage.” / read full post