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- The global chip shortage is due to a combination of factors, including strong demand for electronics, shifting business models in the semiconductor world, and effects from the U.S. trade war with China1. The COVID-19 pandemic has also played a role, with rolling shutdowns of vehicle assembly plants leading to wafer and chip suppliers diverting parts to other sectors such as consumer electronics2. The pandemic has also led to stockpiling and advance ordering of chips by some tech firms, which left others struggling to acquire the components3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Semiconductors are in short supply because of strong demand for electronics, shifting business models in the semiconductor world that created a bottleneck among outsourced chip factories, and effects from the U.S. trade war with China that started under former President Trump.www.cnbc.com/2021/02/10/whats-causing-the-chip …The origin of the shortage dates to early last year when Covid caused rolling shutdowns of vehicle assembly plants. As the facilities closed, the wafer and chip suppliers diverted the parts to other sectors such as consumer electronics, which weren’t expected to be as hurt by stay-at-home orders.www.cnbc.com/2021/02/11/how-covid-led-to-a-60-b…As the pandemic unfolded, early signs of fluctuating demand led to stockpiling and advance ordering of chips by some tech firms, which left others struggling to acquire the components. People working from home have needed laptops, tablets and webcams to help them do their jobs, and chip factories did close during lockdowns.www.bbc.com/news/business-58230388
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