Ep. 4 — The semiconductor chip shortage, what’s causing it, why it matters, and what we need to do about it / John Neuffer, President and CEO, Semiconductor Industry Association.
Mar 10, 2021•24 min•Ep 4•Transcript available on Metacast Episode description
There’s a global semiconductor chip shortage brought on by the massive supply chain disruptions due to the COVID-19 pandemic. And it’s hurting U.S. industries in a big way. President Joe Biden recently signed an executive order to try to help industries ranging from medical supplies to electric vehicles, that have been affected by this shortage. But will it solve the problem? If not, what does the U.S. government need to do to resolve the chip crisis? That’s the focus of our conversation today.
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Chitra Ragavan:
The semiconductor chip shortage, what's causing it, why it matters, and what we need to do about it. That's the focus of our conversation today. Hello, everyone. I'm Chitra Ragavan, and this is Techtopia. Joining me is John Neuffer. He's President and CEO of the Washington, D.C.-based Semiconductor Industry Association. Neuffer is responsible for setting and leading the public policy agenda and serves as the primary advocate for maintaining U.S. leadership in semiconductor design, manufacturing, and research. John, welcome to Techtopia.
John Neuffer:
Hi, Chitra. Great to be here.
Chitra Ragavan:
I think we all have this vague understanding that all electronics are getting smaller and more portable, but I don't think we have a grasp of just how small and portable the underlying semiconductor chips are. For the lay audience, can you explain in simple terms what semiconductor chips are and how they've evolved over the decades in their size, and scope and scale of applications and importance?
John Neuffer:
Well, most semiconductors are made from silicon, and silicon comes from sand, and people don't realize it. Silicon is actually the second most abundant element in the earth's crust, only after oxygen. Why are they called semiconductors and not just conductors, and that's because they conduct electricity sometimes, and sometimes they don't. In that regard, there's kind of three types of materials. There's materials that conduct electricity like metal, there's materials that are insulators, they don't conduct electricity that's like glass, and there's semiconductors, and they can do both.
John Neuffer:
Whether they can conduct or insulate is controlled by the use of electric fields, and that's how you create your transistors, your on and off switches. That's essentially what a semiconductor is. There's actually very little kind of general knowledge of what these things are and really kind of how powerful they are.
Chitra Ragavan:
You've been in this industry for a long time. What's the thing that surprised you the most when you first started learning about chips and what's the thing that surprises you most now?
John Neuffer:
It's an awesome technology. In the last 60 years, there's just been an amazing pace of innovation. It's probably the most innovative industry in the world. The chips, the transistors on the chips have gotten amazingly small. Chip manufacturers are now manipulating materials at atomic levels to make these transistors so small.
John Neuffer:
The most packed chips now, the highest-end chip has 54 billion transistors on one chip. That's 54 billion on/off switches on one chip, and that's basically the size of a quarter. The other thing that's really happened is that chips have gotten amazingly cheap. If space travel had come down in price, as much as transistors have, the Apollo 11 mission, which cost $350 million in 1969 dollars, and put Neil Armstrong on the moon, well, that would have cost as much as a latte, and so that has driven computing power to just soaring heights, Chitra. Some of the world's best computers in 1985 would take four and a half hours to process what the best chips now can process in one second, so it's just been amazing pace of innovation. I think that's a defining feature of the semiconductor industry.
Chitra Ragavan:
That's absolutely incredible.
