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- The semiconductor shortage was caused by a confluence of problems1. The COVID-19 pandemic introduced unprecedented challenges, such as automakers cutting their chip orders in early 2020 as vehicle sales plummeted1. The pandemic also prompted chip factories to start shutting down early last year, particularly overseas, where the majority of the processors are made. By the time they started to reopen, they had a backlog of orders to fill. That wouldn’t have been as daunting if chipmakers weren’t then swamped by unforeseen demand2. Prior to the pandemic, the rise of 5G increased demand, and the decision by the US to prevent the sale of semiconductors and other technology to Huawei flooded chip makers outside the US with orders from the Chinese firm3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A confluence of problems led to the semiconductor shortage. In addition to long-standing issues within the industry, such as insufficient capacity at semiconductor fabs, the COVID-19 pandemic introduced unprecedented challenges. For instance, automakers cut their chip orders in early 2020 as vehicle sales plummeted.www.weforum.org/agenda/2022/02/semiconductor …The pandemic prompted chip factories to start shutting down early last year, particularly overseas, where the majority of the processors are made. By the time they started to reopen, they had a backlog of orders to fill. That wouldn’t have been as daunting if chipmakers weren’t then swamped by unforeseen demand.www.usatoday.com/story/tech/2021/04/02/chip-sho…Koray Köse, an analyst at Gartner, says that among the pressures facing the chip industry prior to the pandemic were the rise of 5G, which increased demand, and the decision by the US to prevent the sale of semiconductors and other technology to Huawei. Chip makers outside the US were quickly flooded with orders from the Chinese firm.www.bbc.com/news/business-58230388
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