Why shortages of a US$1 chip sparked crisis in global economy


Vehicles parked in front of the Samsung Electronics Co semiconductor manufacturing plant in Pyeongtaek, Gyeonggi Province, South Korea. The US$450bil semiconductor industry has lurched into crisis as there aren’t enough display drivers, a one-dollar part with the sole purpose to convey basic instructions for illuminating the screen on your phone, monitor or navigation system, to go around. — Bloomberg

To understand why the US$450bil (RM1.85 trillion) semiconductor industry has lurched into crisis, a helpful place to start is a one-dollar part called a display driver.

Hundreds of different kinds of chips make up the global silicon industry, with the flashiest ones from Qualcomm Inc and Intel Corp going for US$100 (RM413) apiece to more than US$1,000 (RM4,131). Those run powerful computers or the shiny smartphone in your pocket. A display driver chip is mundane by contrast: Its sole purpose is to convey basic instructions for illuminating the screen on your phone, monitor or navigation system.

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Semiconductors , computers

   

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