{"id":120529,"date":"2021-09-26T17:52:04","date_gmt":"2021-09-26T21:52:04","guid":{"rendered":"https:\/\/rbach.net\/?p=120529"},"modified":"2021-09-26T17:52:04","modified_gmt":"2021-09-26T21:52:04","slug":"how-the-global-chip-shortage-impacts-you","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/how-the-global-chip-shortage-impacts-you\/","title":{"rendered":"How The Global Chip Shortage Impacts You"},"content":{"rendered":"\r\n

\"How<\/a>Before the Internet of Things (IoT) computer chips<\/strong> were only used in computers. Today, they power all kinds of devices. They are critical parts<\/strong> of cars, cell phones, IoT devices, and consumer electronics. Computer chips increased our efficiency. Our chip reliance when combined with the COVID-19 pandemic<\/strong> has led to a global computer chip shortage. As demand continues to outstrip supply, it\u2019s only a matter of time before you feel the effects of the global chip shortage<\/strong>.<\/p>\r\n

The global chip shortage<\/h3>\r\n

\"\"The global chip shortage is a direct result of the COVID-19 pandemic<\/strong>. The crisis has impacted automakers<\/strong> around the world. Modern vehicles use between 500 and 1,500 computer chips<\/a>. The automotive industry needs tens of millions of computer chips annually<\/strong>. The pandemic led automotive suppliers to cut demand for chips because of the economic downturn<\/strong> that followed. As demand increased for cars, semiconductor manufacturers lacked the capacity to handle the increased demand for automotive chips<\/strong> as these manufacturers had shifted their lines to other industries that wanted to buy their chips.<\/p>\r\n

\"Computers<\/a>Plants are idled<\/h3>\r\n

\"GM<\/a>The largest impact of the global chip shortage can be seen in the automotive industry. General Motors<\/a>\u00a0<\/strong>(GM<\/a>) plans to temporarily idle<\/a> nearly all its assembly plants in North America. GM will keep a handful of assembly plants online in Texas, Kentucky; and Michigan. GM spokesman Dan Flores told<\/a> the Detroit Free Press, “All the announcements we made today are related to the chips shortage …<\/em>”\u00a0<\/p>\r\n

GM is not the only manufacturer impacted. The Ford Motor Company<\/a><\/strong>\u00a0(F<\/a>) announced that its profit for the second quarter fell to $561 million, about 50% less than what the company achieved last year, due to the crippling chip shortage. Ford paused production<\/a> of its F-150 pickup trucks and other SUVs at its Kansas City assembly plant and cut shifts at truck plants in Michigan and Kentucky. The company also had to slow production of its Mustang Mach-E, its electric model of the classic muscle car.<\/p>\r\n

\"Ford<\/a>Other carmakers were also impacted. In the summer, several automakers warned<\/a> about delays in production due to the chip shortage including:<\/p>\r\n