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[nook]

Silicon chips are at the heart of many of the biggest technology stories of our time.

Without them, car plants around the world have come to a halt. The technology to make them is now seen by the United States as a key weapon in its trade war with China. And access to the latest and most-powerful versions will determine who wins the artificial intelligence race.

In this week's Tech Tent podcast, we look at the semiconductor industry and try to answer five important questions about chips.

What's behind the current shortages?
From Ford and General Motors in the US, to Honda in the UK, and electric car-maker Nio in China: major automotive companies have had to cut back production due to a shortage of chips. Why?

Well it seems the pandemic is to blame, continually making every prediction about chip demand look out-of-date.

First, it made demand for gadgets soar, as years of digital transformation happened in weeks. pg gaming

"We've been talking about working from home and 5G and IoT and the cloud for years. And now suddenly it's a reality," says Jodi Shelton, chief executive of the World Semiconductor Association.

Meanwhile, sales of new cars fell off a cliff and automotive executives cancelled orders for chips.

But then, an unexpected rebound in sales caught them flat-footed, along with their chip suppliers.

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