A new world war has begun name is a chip. The line of command chip production totally destroyed now. Chip mainly used the Auto industries and the technology sector. A company when producing their car this time need more the 2000 plus chip. But the new technology car uses more chip. Our computers, laptops, mobile, and other electronic devices use chips. Finally, we know impossible to produce an electronic device or car without a chip. Apple do not declare their new device, Samsung is behind their new mobile marketing stop, USA auto industries totally decrease their production, and the country car sale is down, computer most important graphics card is not available in the market, Nissan, Toyota, Ford Automobiles stop their many car production plants. The main reason for this situation is the shortage of chips. In this situation now automatically increase car, computer, electronic devices price.
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The situation is gone now very dangerous that the reason the American president sign to a new order makes industries in this sector. But chip production is a very long time process.
What is chip?
Chip is an integrated circuit. Which are the heart of any electric device. We know world every device more important things is a chip. Present world impossible to make a device without a chip. Fridge, AC, Mobile, Air condition, Air fighter, Fighter jet, car, guided-missile every device most important things are chip. Even world space stations use this chip. In a word, nothing can be imagined in the current digital world.
Who Is the main customers Chip?
Globally maximum quantity chip use on Auto industries. After the next position takes the electronic device industry. Every modern car use more than 3000 plus chip. Last some years increase use chip in computer and laptop. Cryptocurrency is also a big factor for the increased use of chips because we are now all digital currency transactions use laptops and PC. That the reason like this device increases use.
Why Shortage Chip in market?
How come there is such a shortage of small things? Questions may arise in everyone’s mind. The straightforward answer is the coronavirus. When the world went bankrupt in 2000, Auto Industries suffered the most. About 40 billion chip orders were canceled due to declining global sales. So the chip manufacturing companies were forced to shut down. At that time, the use of PC laptop cameras had increased several times. But most of the chip were used in auto industries. As a result, large plants of chip manufacturing companies were shut down. It is not so easy for companies to start these plants again. Because the manufacturing process is the most complex and time-consuming method of hardware manufacturing. Again the design of the chip of different companies is different. Suppose Samsung makes Apple chip if you want Apple’s chip, you can’t make Apple again. Similarly, the chip of General Motors cannot be produced by anyone other than TSMC.
Only 31 companies in the world can produce chip. Taiwan Semiconductor Company manufactures 54% of the chip worldwide. After that the next position of Samsung company. They can produce 20% of the world’s demand for Chip. Except for these two famous companies, all the other companies together can make only 26% percent. Intel, Qualcomm, other reputation companies also produce Chip. Simply put, Samsung and TSMC cannot handle the same product like all the others.
To make such plants, many fine particles have to be considered. Because the plants are much more unique. It takes at least 14 months to build each plant and it takes another 12 to 14 months to go into production at these plants. These plants have to be constructed in such a way that a small amount of dust cannot enter. There is a lot of water use. Taiwan has announced it will reduce water consumption by up to ৮%. Because the water level in the lower part of the country is decreasing day by day. The country is also home to the world’s largest chip manufacturing plant, TSMC. The most essential material for chip production is a silicon weeper made of silicone. One can make about 1500 chips with one weeper. The machine with which the chip is made with the help of a weeper is called lithography. The cost of a lithography machine ranges from $25 million to $100 million. The more machines you install, the more production will increase. It costs $7 to $15 billion to set up each plant. If one plant start is it not possible to shut down. Because the plant is shut down again starts to need a minimum time of 6 months.
Why name this war Chip?
About 85% of the world’s Chip are produced in Asia. And 54% is made in Taiwan, which is a cause for concern for the United States. Because if America is at war with China, China will first use chip weapons, using Taiwan under them. As a result, technology will become stagnant. America will face more losses than anyone else. That’s why America wants to produce all the chips they can’t. So it’s named chip war. The United States has so far allocated more than $100 billion to set up new plants. However, it is not possible to change this situation before 2023. Buy all the things you need before the price of all types of laptops, electronic devices that you’re necessary. Because of the chip crisis, the price of laptops, mobile devices, and automobiles may go up.