The global shortage of chips is a growing concern in the tech industry (and has even caught the interest of the US President) as it begins to affect the production of more and more products, from cars to graphics cards to game consoles. For a good explanation of all the factors that led to the shortage, you should read Bloomberg‘s interferenceIt addresses factors such as pandemic-driven demand and the small number of companies actually capable of producing the chips that now power so much of our digital lives.
One of the most interesting features of the article is an interactive image that shows the customers and industries using Taiwan Semiconductor Manufacturing Company (TSMC), which gives a good idea of the scale and possible downstream effects of the manufacturing bottleneck when one company becomes a dominant force in the pipeline of consumer electronics components. You will likely learn something new by playing with it – like the potentially surprising size of Texas Instruments, a company commonly associated with calculators.
The article also addresses factors that are more obscure but no less important, such as lead times and inventory planning. Despite its depth, the Bloomberg piece still manages to portray the interplay between all global events and companies involved surprisingly clearly, and that’s why it is worth reading