The chip shortage is not going away in a hurry. This is why

 The chip shortage is not going away in a hurry. This is why

The global chip shortage, which began last year, has impacted a range of industries. In all, 169 industries have faced the crunch, including automobiles, computers, medical equipment and other electronic devices, according to Goldman Sachs. In most industries, and in normal circumstances, such gaps are addressed fast as businesses ramp up production and address bottlenecks. But the chip industry has its own demand and supply characteristics, which got amplified by the pandemic. As a result, the current shortages are likely to persist for a few more quarters.

The coronavirus pandemic disrupted both supply and demand. On the supply side, many factories shut down, especially during the start of the pandemic. On the demand side, as remote work and studies became the norm, demand for laptops and other electronic devices surged. Once lockdowns were eased and the economy recovered, car sales, too,…

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