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- The global chip shortage is the result of a confluence of factors123. Carmakers, which shut plants during the COVID-19 pandemic last year, are competing against the sprawling consumer electronics industry for chip supplies1. Consumers have stocked up on laptops, gaming consoles and other electronic products during the pandemic, leading to tighter inventory1. High interest rates and input costs are making the chip-making process all the more difficult2. The origins of the current shortage can be traced back to the automotive industry3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year, compete against the sprawling consumer electronics industry for chip supplies. Consumers have stocked up on laptops, gaming consoles and other electronic products during the pandemic, leading to tighter inventory.www.nasdaq.com/articles/explainer-why-is-there-a …High interest rates and input costs are making the chip-making process all the more difficult, a trend that is expected to continue for some more time. This will not only exacerbate the global chip shortage but will also contribute to the global economic slowdown that the world is so worried about.www.nasdaq.com/articles/why-is-there-a-chip-short…
The chip shortage is the result of a perfect storm of huge demand and limited supply. While consumers may be noticing the chip shortage most acutely when it comes to gadgets, the origins of the current shortage can be traced back to the automotive industry.
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