By: Ethan Price
1 November, 2021
The nation has faced a chip shortage due to the Covid-19 pandemic for the better part of two years. The chip shortage was caused by slowed production due to wide spread unemployment and by the sudden increase in demand as Americans rapidly began to buy goods, using stimulus money, that utilized the computer chips. While originally the shortage mainly impacted automobile, smartphone and appliance manufacturers, today, many other industries have been indirectly affected by the shortage.
The sales of companies such as 3M Co. and Axalta Coating Systems have began suffer as many of their major customers are companies that utilize chips. Union Pacific Corp., a shipment company, has seen business with car and car part makers fall by 18% in their third quarter. Glassmaker Corning loss about $40 million in the last quarter alone due to the fact that their glass is not been used in as many cars as before the shortage. Corning says that the decline in televisions produced has also hindered the company's profits (WSJ).
Although the chip situation is not great now, it is only expected to get worse. The CEO of chipmaker STMicroelectronics, Jean-Marc Chery, said the shortage will likely last until the beginning 2023 (GBR). With the negative impact that many companies have already experienced relating to the chip shortage, Americans and companies alike can only guess what will come next.