This is what happens when the entire world relies on a few countries for manufacturing of computer chips. All manufactured goods should be produced and consumed in the same country. In theory, if the manufacturing is efficiently distributed the supply chain should be immune to the effects of a pandemic or even country specific issues.
I am still baffled that an electronic device produced in some province of China and shipped thousands of miles away (and incurring tariffs) is cheaper than keeping the manufacturing in the same country and shipping at a much shorter distance and not incur any import fees/taxes.
Consolidated production has benefits like economies of scale and world peace, but at the cost of redundancy and national security. Chip production isn't actually that bad; Micron is in the US, Intel is in the US, China, Israel, Ireland, TSMC is in China and Taiwan.
What we're seeing here has nothing to do with consolidation of manufacturing; it's entirely JIT logistics. Decentralization doesn't solve that; surplus capacity and/or inventory solve that.
China is massively subsidizing local manufacturing, in at least two ways: currency stabilization and lack of / lack of enforcement of environmental protections.
I am still baffled that an electronic device produced in some province of China and shipped thousands of miles away (and incurring tariffs) is cheaper than keeping the manufacturing in the same country and shipping at a much shorter distance and not incur any import fees/taxes.