The confused dream of American tokens
It's even harder now to figure out what the US wants to accomplish with its computer chip projects.
< figure class="sizeMedium css-mnvusp" aria-label="media" role="group" data-testid="VideoBlock">Video
CreditCredit...By Alvaro DominguezA global shortage of computer chips had stalled the manufacture of cars, computers and even dog washing machines. But there are now signs that the shortage of chips - the tiny parts that function like the brain or memory in all things electronic - is ending.
This could be good news for our budgets. It's also a delicate time for the Biden administration and U.S. lawmakers who have been pushing for taxpayer funding for computer chips with a slew of goals, including alleviating shortages.
Some of these goals are reasonable. But throwing government money at solving chip shortages had seemed questionable. Now that looks like an error. Let's see why:
Why are chips important again?
Computer chips are necessary for smartphones, video game consoles and other consumer electronics. We also use them in fighter jets; in car ignition, brake and entertainment systems; and to track milk production from dairy cows.
As my colleague Don Clark explained last year, it's not strange that crisps are temporarily diminish. What's been unusual over the past two years has been the wild combination of pandemic-related disruptions and our overwhelming desire to buy more stuff, which has led to a variety of shortages.
What has changed?
Over the past few weeks, computer chips suddenly seemed to become abundant. Several computer chip companies warned that their sales were going from hot to not. Unused chips are piling up in South Korea, a major manufacturing hub, at the fastest rate in years.
A big reason is that people around the world people aren't buying electronics like laptops, smartphones, and TVs as much as they did a year or two ago. Many people are worried about rising prices and the health of economies and are holding back. Companies are therefore cutting orders for computer chips that would have been incorporated into many products.
This is how the economy and computer chips tend to work. When people feel good and spend a lot, chip factories multiply to do a lot more. Almost always they overproduce and there are too many chips. Some experts said the pandemic mania would be followed by a flea outbreak. We are not there...
It's even harder now to figure out what the US wants to accomplish with its computer chip projects.
< figure class="sizeMedium css-mnvusp" aria-label="media" role="group" data-testid="VideoBlock">VideoCreditCredit...By Alvaro DominguezA global shortage of computer chips had stalled the manufacture of cars, computers and even dog washing machines. But there are now signs that the shortage of chips - the tiny parts that function like the brain or memory in all things electronic - is ending.
This could be good news for our budgets. It's also a delicate time for the Biden administration and U.S. lawmakers who have been pushing for taxpayer funding for computer chips with a slew of goals, including alleviating shortages.
Some of these goals are reasonable. But throwing government money at solving chip shortages had seemed questionable. Now that looks like an error. Let's see why:
Why are chips important again?
Computer chips are necessary for smartphones, video game consoles and other consumer electronics. We also use them in fighter jets; in car ignition, brake and entertainment systems; and to track milk production from dairy cows.
As my colleague Don Clark explained last year, it's not strange that crisps are temporarily diminish. What's been unusual over the past two years has been the wild combination of pandemic-related disruptions and our overwhelming desire to buy more stuff, which has led to a variety of shortages.
What has changed?
Over the past few weeks, computer chips suddenly seemed to become abundant. Several computer chip companies warned that their sales were going from hot to not. Unused chips are piling up in South Korea, a major manufacturing hub, at the fastest rate in years.
A big reason is that people around the world people aren't buying electronics like laptops, smartphones, and TVs as much as they did a year or two ago. Many people are worried about rising prices and the health of economies and are holding back. Companies are therefore cutting orders for computer chips that would have been incorporated into many products.
This is how the economy and computer chips tend to work. When people feel good and spend a lot, chip factories multiply to do a lot more. Almost always they overproduce and there are too many chips. Some experts said the pandemic mania would be followed by a flea outbreak. We are not there...
What's Your Reaction?
