Experts Cite Reasons Behind the Prolonged Chip Shortage

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Experts have cited an increase in demand for technology products, easing, a shift to e-commerce, and the inability of chip foundries to meet demand as some of the reasons why the global chip shortage continues unabated.

Further revelations showed that the “double ordering” of a move in which companies buy more components than they need if supply dries up could also contribute to the ongoing chip shortage.

Chips are different, causing more problems because simple components (power-control integrated circuits, microcontrollers, and sensors) made using older manufacturing methods are often not available.

Addressing the problem of high demand will require expanding the chip supply chain and building new chip factories, but this option will take time and cost billions of dollars.

Chip production is further hampered by the fact that only one company, ASML, manufactures the extreme ultraviolet lithography machines needed for chip production, and machines cannot be manufactured in time to meet demand.

For more information, read the original story in Arstechnica.



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