Now the global chip shortage has moved from automobiles to consumer electronics.
The capitalist system cannot create robustness in markets, because the creation of safety margins are expensive, and inherently unprofitable.
Our hyper-efficient global economy has a glass jaw:
The deepening global chip crunch is spreading to makers of smartphones, televisions and home appliances, according to suppliers in Asia, as companies boost stockpiles of in-demand semiconductors.
Chip supplies have tightened due to booming demand for electronics during the Covid-19 pandemic and outages at large production facilities.
But the shortage has been worsened by hoarding by sanctions-hit Chinese groups, which has made it harder for some companies to secure components for everyday electronics such as washing machines and toasters.
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LG, a big appliance maker, said the chip shortage had not yet disrupted its production but admitted it was a risk. “We are closely monitoring the situation as no manufacturer can be free of the problem if it gets prolonged,” the company said.
A small TV maker in Seoul said: “It is getting more difficult to secure key components unless you pay higher prices. We have to hike TV prices, reflecting the rising material costs.”
Production of low-margin processors that carry out simple tasks such as weighing clothes in a washing machine or crisping bread in a smart toaster has been affected.
“Microcontroller units are in tight supply, which could be impacting general appliances,” said Randy Abrams, head of Asian semiconductor research at Credit Suisse.
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Foundries in South Korea said they were unable to satisfy surging orders even while operating at full capacity.
This is why we need governments, and government regulation.
Running a society completely on selfishness is insane.
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