The COVID-19 pandemic is the main cause of the global chip shortage. Due to global lockdowns, chip production facilities shut down which caused stock to drain. Due to the COVID-19 pandemic, more people had to stay home and upgraded their electrical devices such as webcams, monitors and computers in order to stay in touch and be entertained. In the fourth quarter of 2020, traditional computer sales saw a 26.1% growth over the previous year.
The 2020–22 global chip shortage is an ongoing crisis in which the demand for integrated circuits (commonly known as semiconductor chips) is greater than the supply, affecting more than 169 industries and has led to major shortages and queues amongst consumers for video cards, video game consoles, cars and other electrical devices.