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Computer Chip Shortage: Not Going Away Any Time Soon

By Dick Weisinger

Since 2020 the world has seen a global chip shortage. The shortage has pushed up prices and made it difficult for manufacturers to produce products that rely on them. Some of the products affected include automobiles, video game consoles, home appliances, and computers.

Yashar Shahabi, senior vice president at Sourceability, told Fierce Electronics that “microcontrollers have jumped multiple-fold. It is not uncommon now for a single microcontroller to sell for a few hundred dollars, up from only a few dollars more than a year ago. The most extreme example is a microcontroller from one chipmaker going from $7 in price to more than $400.”

A Bloomberg article cites an unnamed German business is buying washing machines to tear out the chips inside them and use them inside their own products.

ASML builds the tooling used by chip makers to produce semiconductor chips. Wennick said that his business is struggling to keep up with the demand given their recent surge of orders and doesn’t expect the chip shortage to go away any time soon. Wennick blames the rise of the Internet of Things as contributing to the shortage.

Peter Wennink, CEO of ASML, told Bloomberg that “the demand we are currently seeing comes from so many places in the industry. It’s so widespread. We have significantly underestimated the width of the demand. That, I don’t think, is going to go away.”

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