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We have no chips. I mean, computer chips. These same chips are also used on phones, tablets, data servers, vehicles, heavy machines used in agriculture and manufacturing… basically everything we need to keep businesses running while we battle this pandemic that seems to have 9 lives. Without computer chips, our society as it is constituted today simply could not function.
The chip shortage is expected to last “a few years”.
I know what you are thinking, why not make more chips?
It’s not that simple. If it were, we wouldn’t have a shortage.
There are two important things chips need, gold and an incredibly sophisticated, and manufacturing process to turn that gold into a chip.
Worldwide, the annual manufacture of communication products uses some $21 billion worth of gold. And this is just communication devices. We haven’t even figured in chips used in data servers, manufacturing machines, and other tools.
Add to this the 1,400 steps in the overall manufacturing process for semiconductor wafers. It can take as long as 20 weeks to complete advanced chips. Fabs can use as many as 300 different types of materials throughout fabrication.
We used to make a lot of chps. But difficulty in getting gold and continuous increase in the cost of maintaining people pushed us to go outside the country.
Over the decades, the percentage of chips made inside the United States has dwindled. At one time 37 percent of all computer chips were made inside the United States, but now that number stands at just 12 percent.
Today, the vast majority of the computer chips that are used around the globe are made over in Asia- China, Japan, South Korea and Taiwan specifically.
And that’s where the trouble begins. We are dependent on someone else and are competing against the rest of the world.
The head of IBM is telling us that it could last “a few years”…
The boss of the US tech giant IBM has said a computer chip shortage could last another two years.
Its President Jim Whitehurst told the BBC it could be “a few years” before the situation improves.
CNBC said it could persist “into 2023″…
Glenn O’Donnell, a vice president research director at advisory firm Forrester, believes the shortage could last until 2023.
The problem is some of our biggest companies need those chips.
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