Effects Of Computer Chips Shortage To Our Economy

We have no chips. I mean, computer chips. These same chips are also used on phones, tablets, data servers, vehicles, heavy machines used in agriculture and manufacturing… basically everything we need to keep businesses running while we battle this pandemic that seems to have 9 lives. Without computer chips, our society as it is constituted today simply could not function.

The chip shortage is expected to last “a few years”. 

I know what you are thinking, why not make more chips? 

It’s not that simple. If it were, we wouldn’t have a shortage. 

There are two important things chips need, gold and an incredibly sophisticated, and manufacturing process to turn that gold into a chip. 

Worldwide, the annual manufacture of communication products uses some $21 billion worth of gold. And these are just communication devices. We haven’t even figured in chips used in data servers, manufacturing machines, and other tools. 

Add to this the 1,400 steps in the overall manufacturing process for semiconductor wafers. It can take as long as 20 weeks to complete advanced chips. Fabs can use as many as 300 different types of materials throughout fabrication.

We used to make a lot of chips. But the difficulty in getting gold and continuous increase in the cost of maintaining people pushed us to go outside the country. 

Over the decades, the percentage of chips made inside the United States has dwindled.  At one time 37 percent of all computer chips were made inside the United States, but now that number stands at just 12 percent.

Today, the vast majority of the computer chips that are used around the globe are made over in Asia- China, Japan, South Korea, and Taiwan specifically. 

And that’s where the trouble begins. We are dependent on someone else and are competing against the rest of the world. 

The head of IBM is telling us that it could last “a few years”…

The boss of the US tech giant IBM has said a computer chip shortage could last another two years.

Its President Jim Whitehurst told the BBC it could be “a few years” before the situation improves.

CNBC said it could persist “into 2023″…

Glenn O’Donnell, a vice president research director at advisory firm Forrester, believes the shortage could last until 2023.

The problem is some of our biggest companies need those chips. 

Apple needs chips to make iPhones, and it is being projected that Apple will lose billions of dollars in sales simply due to a lack of chips…

The impact on the auto industry will be even more dramatic.

According to NBC News, auto industry revenues will be down 110 billion dollars in 2021 alone because of a lack of chips…

Obviously, this is not something we want to happen in our country but we can’t control it. 

What we can do is use this information to know how to protect our future. 

What we know is that there is a shortage of gold and more people will need it. So get your hands in some because gold will only become more valuable. 

Revisit your portfolio. Make sure you are still building up to a retirement that you want and once you determine how much gold you need to secure that retirement, call us. 

We are here to help you. 

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About Noble Gold

At Noble Gold Investments, we protect our clients financial futures by giving them a safe and easy way to invest in Gold and other Precious Metals. Whether it’s diversifying your portfolio with a Gold or Silver IRA, acquiring precious metals, or storing bullion in our Texas depository, our no-pressure agents can guide you through all the options available to you.

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