Home Capital Global review

Chip shortage spirals beyond cars to phones and game consoles

Debby Wu, Takashi Mochizuki and Vlad Savov
Debby Wu, Takashi Mochizuki and Vlad Savov2/10/2021 06:31 AM GMT+08  • 6 min read
Chip shortage spirals beyond cars to phones and game consoles
Chips are in short supply as more digital devices are bought and used around the world.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The first hints of trouble emerged in the spring of 2020. The world was in the early throes of a mysterious pandemic, which first obliterated demand then super-charged internet and mobile computing when economies regained their footing. That about-face — in a span of months — laid the seeds for potentially the most serious shortage in years of the semiconductors that lie at the heart of everything from smartphones to cars and TVs.

Auto and electronics makers that cut back drastically in the early days of the outbreak are now rushing to re-up orders, only to get turned away because chipmakers are stretched to the max supplying smartphone giants like Apple. Last week, Qualcomm’s Cristiano Amon — head of the world’s largest mobile chipmaker — flagged shortages “across the board,” citing the industry’s reliance on just a handful of players in Asia.

Amon joined a growing chorus of industry leaders warning in recent weeks they can’t get enough chips to make their products. Carmakers appear in direst straits and have spurred the US and German governments to come to their aid — General Motors on Feb 4 was forced to mothball three North American plants while Ford Motor is bracing for a 20% drop in nearterm output.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.