By Angel Lopez-Bello

Microchips are in everything we use these days. Even a toaster has chips in it. Currently there is a semiconductor shortage and it is affecting the businesses you might expect, like computer manufacturers but it is also affecting automobile manufacturers. Some products will be much more expensive and others will be unavailable.

Intel CEO Pat Gelsinger said that it could take a couple of years for the problem to be resolved. The shortage of semiconductor microchips was caused by dislocations from the pandemic. This demonstrates just how interrelated these world’s industries are.

The issue for American manufacturers is that our share of the microchip production capacity has fallen to 12%, from 37% in 1990, as reported by Fox Business. This means that we do not have the ability to manufacture all the chips we need for things like laptops, cars and trucks, or anything else we make.

Those companies that can make the chips that the world so desperately needs, are making money faster than ever. Even though there are less chips being made, the manufacturers are making more money. All combined total revenue of chipmakers rose to $22.75 billion, just in the first quarter of 2021. Over half, about 57% of the chip revenues in that same time period was generated by on maker, Taiwan Semicondutor Manufacturing Corp. Over half of the world’s chips comes from one place.

So what does all this mean for us at PHS? Well, if you wanted a new laptop computer to get that homework in, or go off to college, then they many not be available and the ones you do see are going to be much more expensive. Aceer CEO, Tiffany Huang said that they can only meet about half of the demand on any given day. The half that they make will certainly be much more expensive. So take care of the laptop you may already have.

Intel CEO Pat Gelsinger said that the loss of chips will hurt the growing popularity of electric vehicles (EV) too. Tesla has already raised the price of their Model 3 by $2500.

While all electric cars having trouble without microchips seems logical, the reality is that all cars are rolling computers these days. Ford CEO Jim Farley said that this was the biggest interruption of a supply chain that he has ever seen. This interruption of supply is halting the production of cars and in places like Kentucky they are using the parking lot of a NASCAR track to store F150’s until they can be finished with various computer components.

While most of us in PHS are not in the market for a brand new car, because buying new cars is more expensive and harder, used car prices are shooting up as well. While that is good if you want to sell a car, it is bad if you want to buy that first hooptie of your dreams. There just are not any cheap cars out there.

One aspect of this shortage that is hitting students harder than any other is its impact on video game and gaming computer consoles. Even as more people are playing online video games than ever before, the chip shortage has made getting a new console or building that new gaming computer much more expensive and much more difficult. So, when you loose that hot round of League of Legends of Call of Duty, do not take it out on your console. It has to last a bit longer.

Hopefully, this shortage will end sooner than later, but the problem that it brings up is that there is a need for more companies, and more American companies to manufacture these chips so that issues like this can be avoided in the future. Good luck!