Causes of global chip shortage, local solutions – new video uploaded to AP Video Hub

In the video, Lundstrom breaks down the ongoing chip shortage and explores solutions. All videos in the Campus Insights series are free for download and use by all AP members and can be found at apvideohub.ap.org or by doing a general search on the Associated Press site. AP members may use the video or to pull quotes for print article or for broadcast or podcast.

STORYLINE

The U.S. consumes about half of the chips produced worldwide, but only manufactures 10% of them. Lundstrom says that the shortage came about in part from a spike in demand for electronic products during the COVID-19 pandemic. Supply chain disruption compounded the problem, leading to low supply and high demand. Lundstrom says that unlike in the past, chips today are used in almost everything. Smartphones, cars, computers and satellites all use chips. Without them, Lundstrom says that it would be like living in the 1940s. In order to ease this shortage, he says that more chip building manufacturing facilities need to be created, especially in the U.S. Lundstrom also points out that creating chips requires a highly skilled workforce. An increase in the education of workers in chip production will be necessary to meet rising demand.