Sketchnote: Why Chips Are Down
Chip production is a global endeavour. Each stage may involve shipping parts and equipment across multiple locations.
Half a trillion dollar industry
Semiconductors make up the heart of almost every electronic device and machinery. From cars to washing machines and gaming equipment, they are used everywhere.
Instead of owning the entire production process for individual chips, every company and factory competes globally over every step of production. No one stores inventory because of lean production methods. Just-in-time supply chains distributed across different countries and continents mean that the whole world is vulnerable.
A storm in one country or a political flare up between two countries could throw the whole world into a crisis.
Read more: Your Car, Toaster, Even Washing Machine, Can’t Work Without Them. And There’s a Global Shortage