Name: Here's why there's a global computer chip shortage that is slamming automakers during the pandemic
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Here's why there's a global computer chip shortage that is slamming automakers during the pandemic

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Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowGet the latest tech news &amp; scoops — delivered daily to your inbox.Something is loading.the Biden administration to intervene in what has become a global computer chip shortage."We believe that the incoming administration can continue to play a helpful role in alleviating the worst impacts of the shortage on American workers," the senators wrote in a letter.So what's going on?&nbsp;These chips have become a crucial part of the supply chain.Car companies like Ford use them to power the modern-day technology in their vehicles — the engine, Bluetooth capabilities, seat systems, collision and blind-spot detection, transmissions, WiFi, and video displays systems all run on the chips.And the silicon components are what power the high-tech gadgets from companies like Apple that we use every day. The upgraded technology in gaming consoles and 5G smartphones in particular require a lot more power, and therefore rely more on chips than previous generations.Since March, when the pandemic set in, and for and gaming consoles that people can use for entertainment while stuck at home.Automakers like General Motors, Toyota, Ford, and Subaru, to name a few, were forced to close factories around the onset of the pandemic. When the factories reopened, customer demand for cars had skyrocketed as people, stimulus checks in hand, jumped at the opportunity for low-interest rates and a way to get around that didn't involve mass transportation.Automakers responded by , further driving up demand — and competition — for computer chips.Read more: Meanwhile, chip industry players like , even since before the pandemic. And chipmakers overseas were also experiencing supply chain disruptions Even with chipmakers that are like Taiwan Semiconductor Manufacturing Company — which produces of the world's computer chips and is — there still isn't enough supply to go around.Computer chip makers are running at maximum capacity and it's not feasible for companies to build factories to compensate for the increase in demand, has reported.Phone makers like Apple are more prepared to pay higher prices for the chips than automakers are, according to an analyst who spoke to . That doesn't mean phone makers haven't been negatively impacted by the chip shortage though — to power its 5G-equipped iPhone 12 models that debuted in October.But the auto industry specifically has felt the pinch, and some have even had to halt production due to the shortage. because they don't have enough chips.With not enough chips in supply, the automaking industry could lose $61 billion in 2021, according to consulting firm Alix Partners as Bloomberg reported.Sign up for notifications from Insider! Stay up to date with what you want to know.Subscribe to push notificationsAn icon in the shape of a lightning bolt.Keep readingIt indicates an expandable section or menu, or sometimes previous / next navigation options.Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowGet the latest tech news &amp; scoops — delivered daily to your inbox.Something is loading.the Biden administration to intervene in what has become a global computer chip shortage."We believe that the incoming administration can continue to play a helpful role in alleviating the worst impacts of the shortage on American workers," the senators wrote in a letter.So what's going...

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Katie Canales

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Here's why there's a global computer chip shortage that is slamming automakers during the pandemic

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