The chip shortage was supposed to be yesterday’s problem, but as the holiday shopping season hits with prices higher than expected, it’s clear the fix is taking longer than anyone hoped.

The 2020–2023 shortage was one of the worst the US had seen, big enough to earn its own Wikipedia page. Because all electronics need chips — cars, video games, cell phones, appliances — disruptions affected every industry.

Demand spiked in 2020 as the pause of in-person gatherings sent everyone online, at the same time as supply chain ripples, trade wars and other global events disrupted production. Price spikes and long lines for popular items became holiday-season headlines.

Why haven’t prices gone down? The answer is complicated.

In response, the CHIPS Act poured billions into chip research, development and building fabs, the plants where semiconductors are made. So why haven’t prices gone down? The answer is complicated.

There’s no quick fix to increasing semiconductor manufacturing, though. Highly-trained professionals must build an incredibly precise environment, while also ensuring access to enough energy and water to keep things running smoothly, as well as coordination the import of key materials.

However complex you think it is, double that. One mistake costs millions, and that trickles down to the customer.

Taiwan-based TSMC, the world’s biggest chip manufacturer, arguably has the process down pat. Korea-headquartered Samsung, a close competitor, is doing its best to catch up with massive US builds. 

We are seeing results, though. After years of development, US fabs are starting to come online, which will hopefully ease the strain. 

Tariffs and the AI boom, however, are now wreaking their own havoc on the semiconductor market. 

Talks on new tariffs on imported chips may get delayed, but the threat alone spiked prices. Samsung has raised certain chip prices by up to 60%. And the skyrocketing demand for chips for AI compute has been linked to higher costs for electronics of all kinds. 

2026 could be easier as production is expected to ramp up in the new year. 

The industry, however, is preparing for a new disruption. Economist George Gilder predicts the end of the microchip era is coming soon, to be replaced with “wafers,” that will require their own particular builds. 

For now, shoppers may have to accept that patience — and higher prices — are part of the chip-driven reality, at least until the next wave of tech disruption arrives.

Are you upgrading your tech or waiting it out? Send me recs for holiday shopping at katie@technical.ly.