The chip shortage is a self-solving problem

ONE FIRM’S crisis is another’s opportunity. A shortage of semiconductors has helped pump up the valuations of firms such as , whose chips power everything from video-gaming to machine learning and data centres. But boom time for sellers means misery for buyers. Carmakers, whose products have become computers on wheels, are among the victims. Profits at Ford, America’s second-biggest carmaker by volume, fell by half in the most recent quarter amid a global shortage of chips. Analysts say the industry might build around 5m fewer cars this year, all for want of their tiniest components.Carmakers are not the only firms feeling the pinch. Apple and Microsoft have also warned that they will be affected. Politicians are being drawn in, too. Chips will be on the agenda later this month when America’s vice-president, Kamala Harris, visits Vietnam, which has a flourishing electronics industry. Angela Merkel, the outgoing German chancellor, has lamented Europe’s small share of global chip production.