These 5 Charts Help Demystify the Global Chip Shortage ...And reveal why even infusions of cash from the U.S. and European Union won’t solve it
From PlayStations to Porsches, many consumer products have been hit by a chip shortage that began choking the global economy in 2020, and continues today. “We aren’t even close to being out of the woods,” U.S. Commerce Secretary Gina Raimondo tweeted last month. “The semiconductor supply chain is very fragile, and it’s going to remain that way until we can increase chip production.” Congress is poised to fund a $52 billion silicon incentive package, as part of the “America COMPETES” Act, aiming to increase U.S. semiconductor manufacturing—while the E.U. last week outlined their own €43 billion chip shortage-ameliorating package.