WASHINGTON—The pandemic has exposed the fragility of global supply chains, with the latest disruption being a global shortage of computer chips that has forced some automakers to cut or halt production. Western governments are learning hard lessons from these disruptions, pushing to create more resilient and diverse supply chains. The Biden administration has pledged to take “immediate actions,” including potentially providing incentives for domestic production. The demand for consumer electronics has gone through the roof during the pandemic, leading to the shortage of semiconductor chips. Automakers have been hit especially hard from this supply shock; General Motors and Ford have temporarily shuttered some of their plants in response. Building new semiconductor factories is an extremely complex and expensive process, which makes it difficult for chipmakers to scale new capacity rapidly. “COVID-19 pandemic dislocations disrupted the supply and demand patterns for many industries, and we’re starting to see the results of …
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