There is a growing microchip shortage, which is impacting other economic sectors. The shortage is not effecting one nation, but the entire global economy. The auto industry in particular has seen production reduced due to the shortage. The majority of microchip production has shifted to consumer electronics. Seeing as the COVID-19 pandemic has reduced travel this is another blow to the automobile production. If lockdowns continue and the pandemic is not ended, consumer electronic consumption will rapidly increase in demand. Phones, televisions, and video game consoles are reliant semiconductor manufacturers. If the shortage becomes so dire production of electronics worldwide may suffer. Although this may seem like negative news, it could be a new opportunity for emerging companies to help with demand. If new corporations related to semiconductor production rise then it will help with employment and reducing the effects low numbers of microchips. Toyota, Ford, and Volkswagen have reported that their production has been effected by the shortage. A functioning auto industry must be maintained for the sake of economy recovery. The only solution is to encourage the growth of more semiconductor manufacturing companies, government subsidies to protect the auto industry, and monitoring consumer trends.
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