We Need Display Drivers
The semiconductor chip shortage continues to wreak havoc on the global economy.
A trade group called the Alliance for Auto Innovation said the chip shortage could result in 1.3 million fewer vehicles being produced in the U.S. this year as automakers cut production. GPU’s, the new Xbox and the PS5 are also facing shortages due to the semiconductor crisis. How has the semiconductor industry found itself in this predicament, causing shortages across multiple industries? — a $1 part called a display driver might provide the answer.
There are hundreds of chips in the silicon industry, chips ranging from $100 per piece to $1000 per piece. Those chips are responsible for running state of the art computers and your smartphone. By contrast, display drivers might seem like a rather boring chip — their only purpose is to provide simple guidance for lighting up your phone screen or monitor.
Producers of the display drivers can’t keep up with the massive demand as consumers buy more electronic devices which require the chips. Despite operating its facilities at more than full capacity, Taiwan Semiconductor Manufacturing Co. said the company couldn’t keep up with demand. And chip prices are skyrocketing due to the demand, leading to increased costs for parts necessary to produce cars, planes, screens and more.
Our economy won’t rebound back to its usual strength until the display driver shortage is resolved. It’s not like firms can just continue production as usual without display drivers. If you don’t have a display driver, then you can’t develop your product.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
