{"id":24301,"date":"2021-05-28T06:08:01","date_gmt":"2021-05-28T13:08:01","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=24301"},"modified":"2026-04-01T13:14:52","modified_gmt":"2026-04-01T20:14:52","slug":"chip-shortage","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/chip-shortage\/","title":{"rendered":"Remodeling? The Global Chip Shortage Could Throw Your Plan for a Loop"},"content":{"rendered":"

After spending more time at home than ever this past year, you\u2019re ready to remodel your living space. You fantasize about freshly cut quartz countertops and brand new stainless appliances adorning your kitchen. But before you get your heart set on completing that reno by summer, note this potential roadblock: the global chip shortage has led to a home appliance deficit.<\/p>\n

\"A<\/a>
Source: (Brian Kostiuk \/ Unsplash)<\/figcaption><\/figure>\n

The chip (or lack thereof) that broke the global supply chain\u2019s back<\/h2>\n

Before you google \u201cchocolate chip shortage\u201d or \u201cpotato chip shortage\u201d in a confused attempt to understand how such deliciousness could be the precursor to a global crisis, know that the chip we\u2019re referring to isn’t edible \u2014 it’s electronic.<\/p>\n

The concept of a chip in and of itself can be a bit confusing, so let\u2019s start out with the basics.\u00a0A chip (AKA microchip or semiconductor) is a tiny device that provides power to all the electronic gadgets and gizmos of the world.\u00a0<\/a><\/p>\n

The miniature wafer is a pervasive life-force that powers our tech-savvy world. Chips are in everything electronic and imaginable: planes, trains, and<\/i> automobiles \u2014 not to mention your iPhone, MacBook, and GE Tumble Dryer. Your standard 5g smartphone, for example, has roughly eight power-management chips inside of it.<\/p>\n

With $464 billion in revenue in 2020 and predicted industry growth of 12.5% to surpass $500 billion<\/a>, the chip market is undeniably booming. So, how did we find ourselves in a global chip shortage?<\/p>\n

An unforeseen spike in consumer electronic and automobile sales coupled with the pandemic-prompted shutdown of manufacturing plants has led to a scarce supply of the coveted chips. A Goldman Sachs report<\/a> estimates that 169 industries in the U.S. have been directly affected by the shortage.<\/p>\n

While investment in new microchip fabrication facilities is well underway \u2014 in part thanks to President Biden\u2019s $50 billion plan to reverse our reliance on foreign chip production<\/a> \u2014\u00a0 unfortunately, there is no quick fix. The construction of new facilities is an extensive (and expensive) endeavor. It could take three years from the start of construction to the actual production chips<\/a>.<\/p>\n

Expect the chip shortage to impact your kitchen remodel<\/h2>\n

You\u2019ll most likely feel the impact of the chip shortage when shopping for home appliances. Nearly every kitchen appliance that hums with a handle contains a chip, including:<\/p>\n