Global chip shortage (2020-2021)
Pandemic demand for electronics collided with supply disruptions, causing a global semiconductor shortage. Automakers cut production, and consumer electronics prices rose as manufacturers allocated scarce chips to high-margin products.
Production cuts, price increases, and allocation of scarce chips to premium products.
Companies diversified supply chains, and governments invested in domestic chip production, including the U.S. CHIPS Act.
Like today's memory shortage, the 2020-21 crisis forced vendors to prioritize high-margin products and reshaped competitive positions.
