EXPLANATOR: Hungry for more chips in a technology-hungry world | The business

EXPLANATOR: Hungry for more chips in a technology-hungry world |  The business

Source scnow.com

There are no quick fixes, but chipmakers appear to be be gearing up to meet future challenges. WHAT’S GOING TO PREVENT THIS FROM HAPPENING AGAIN?

Intel, which for decades has dominated the market for PC chips, recently made waves by announcing plans to invest $20 billion in two new factories in Arizona. Even more significant, Intel revealed said it is starting a new division that will enter into contracts to make chips tailored for other firms in addition to its own processors. That’s a major departure for Intel, aligning it more closely with a model popularized by Taiwan Semiconductor Manufacturing Co., or TSMC, which already had been building a plant in Arizona, too. Samsung Electronics, one of the world’s biggest chipmakers, recently warned that its vast line-up of consumer electronics could be affected by the shortage. Without specifying which products might be affected, Samsung co-CEO Koh Dong-jin told shareholders that a “serious imbalance” between the supply and demand for chips could hurt sales from April through June.

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