An in-depth analysis of the 2021 semiconductor shortage, arguing that COVID-19 was a catalyst rather than the root cause. The piece traces structural imbalances in the semiconductor supply chain — including constrained 200mm wafer fabs, mature-node economics, and long inherent lead times — and shows how demand shocks from the pandemic exposed these weaknesses. Concrete examples like GM removing heated seats from vehicles illustrate the real-world impact. The bullwhip effect and inventory hoarding dynamics (paralleled with the 2020 toilet paper shortage) are used to explain why supply-demand imbalances are so hard to correct quickly. Part 1 of a series, it uses games like Lemonade Stand to make supply chain economics tangible.
