Abstract

During the Covid-19 pandemic period the tiny particles - the microchips proved to be in high demand by various industries – from IT to the production of simple consumer goods. Main objective of this analysis is to explain the reasons for the shortage of chips and semi-conductors for the automotive industry as the auto maker resumed their activities after the lock downs. Haltering of orders by the major auto producer and rerouting of chip production towards supplies for the electronic industry which proved willing to pay more are the main reasons. Trade specialization and globalization which are endemic for the contemporary world economy do not help to restore the broken supply-demand equilibrium of microchips.

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