Though tiny in size, semiconductor chips are the brains behind our electronic devices, such as electronic toothbrushes, smartphones, and cars.
But high demand has sparked a global shortage that threatens to make even toasters more expensive and less available.
Read this article on euronews.com and answer the questions below.
1.1 Explain the following terms in your own words:
1.2 What are the two main reasons for the chip shortage?
2.1 Calculate the size in euro’s of the chip market worldwide. Use the data from the article.
2.2 Explain why the car production is affected by the chip shortage. Give concrete examples to substantiate your finding.
2.3 Explain why the Global GDP is affected by the chip shortage. Tip, read the following definition of GDP first.
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.
2.4 Find out which Dutch company benefits from the chip shortage. Explain why.
3.1 Describe which solution has been proposed in the article to solve this issue.
3.2 Describe why the US and the EU are depending on only 2-3 Asian countries for the supply of chips.
