A confluence of factors and a visual cascade
The global chip shortage has been a growing concern in the tech industry (and even sparked the interest of the President of the United States) as it begins to affect the production of more and more products, from cars to graphics cards and game consoles . For a good explanation of all the factors that led to the scarcity, you should read Bloomberg’s analysis. He analyzes factors such as the demand fueled by a pandemic and the small number of companies that are really capable of producing the chips that now drive much of our digital lives.
One of the most interesting features of the article is an interactive chart that shows customers and industries using the Taiwan Semiconductor Manufacturing Company (TSMC), which gives a great idea of the scale and potential downstream effects of the manufacturing bottleneck when a company becomes a dominant force in the pipeline of consumer electronic components. You will probably learn something new by playing with it – like the possibly surprising size of Texas Instruments, a company that many associate primarily with calculators.
The article also delves into factors that are more obscure, but no less important, such as delivery times and inventory planning. Despite the depth, the Bloomberg article still manages to show the interaction between all global events and the companies involved with surprising clarity, so it is worth reading.