The chips are down: Why there’s a semiconductor shortage

PARIS: A shortage of semiconductors has sent shockwaves through the global economy, squeezing supplies of everything from cars to headphones.

The dearth of chips has exposed the modern world’s reliance on these miniscule components, the basic building blocks of computers which allow electronic devices to process data. Why is the shortage happening, and what can be done about it?

The start of the Covid-19 crisis in early 2020 prompted a global spending spree on electronic items — from extra monitors as people rushed to set up home offices, to televisions and games consoles for beating lockdown boredom.