“Chipageddon”: What the Global Chip Drought Means for Manufacturing and Supply Chains


A worldwide semiconductor shortage has global manufacturing firms struggling to adapt their supply chains to keep scarcity, delays, and inflation at a minimum. The growth of cloud computing services, cryptocurrency mining, and the range of “smart” products that require semiconductors (along with a market for them that increased over the course of the pandemic) have all contributed to the chip drought, and the absence of a single cause makes the shortage difficult to rectify. This has led to a call for investment in domestic semiconductor manufacturing in order to lessen the reliance on global supply chains. This case asks students to discuss the shortage and its likely impact on consumers, businesses, and manufacturing.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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