Why shortages of a $1 chip sparked crisis in the global economy
January 15, 2022
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1. The chip crunch was born out of an understandable miscalculation as the coronavirus pandemic hit last year. When Covid-19 began spreading to all of world, many companies anticipated people would cut back as times got tough.
2. The trouble for the chip industry -- and increasingly companies beyond tech, like automakers -- is that there aren’t enough display drivers to go around. Firms that make them can’t keep up with surging demand so prices are spiking. That’s contributing to short supplies and increasing costs for liquid crystal display panels, essential components for making televisions and laptops, as well as cars, airplanes and high-end refrigerators.
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