WASHINGTON D.C., DC — The global computer chip shortage seems to be getting worse by the day, and it's having a serious impact on manufacturing.
Technology expert Lance Ulanoff explains, "Chips are really, really important and when the supply is shut down it's going to be really hard to get the cool technology that we need and use everyday."
You might be watching this story right now on your smart phone or computer. Like it or not, most of us are dependent on technology. Those devices in your hand, the car you drive, or even the stove you heat dinner up in may require computer chips. So important is this technology that tech companies and auto makers are sounding an alarm about a computer chip supply shortage.
Ulanoff says, “It's going to take a while for the entire supply chain to right itself." He also says the pandemic accelerated our need for technology just as factories overseas that produce computer chips shut down due to COVID. Most of the computer chips we use in our devices are made in other countries. Now tech companies here are scrambling to figure out how to manufacture chips here in the U.S. Ulanoff says, "We don't have enough people in the U.S. making these chips. That is something that companies literally right now are trying to change."
Apple is warning its customers the chip shortages will impact iPads and Mac computers. The president of General Motors calls it the worst shortage in a supply chain he's seen in years. GM has reduced production on almost all car and SUV lines, prioritizing chip supplies for full size trucks. Ford Motor Company projecting a two and half billion dollar hit to earnings due to the chip shortage.
Philip Michaels is the managing editor of Tom's Guide. He says, "It seems that companies at this point just have to get thru the current shortage. Some are going to probably have to raise prices at some point."
How long will this shortage last depends on who you ask. Apple hoping it will be back to speed in a few months while General Motors fears the auto industry make take years to recover.