Chapter 14: Sony PlayStation 5 Facing the Global Chip Shortage

The Global Chip Shortage is an ongoing phenomenon that began in mid-2020, bolstered by a snowball effect of the severe economic consequences of COVID-19 lockdowns, together with a variety of other prominent issues, such as the U.S.–China trade war and the severe drought of Taiwan in 2021. Electronic chips and, more specifically, semiconductor chips are essential components found in most electronic consumer devices today. Their shortage has unnaturally constrained supply chains worldwide, with effects rippling throughout 169 different industries (Howley, 2021) and thousands of companies. As a result of this bottleneck in the supply chain, many businesses are not meeting their demand and are therefore losing revenue and creating customer frustration…