Economics of microchips

Information technology is fast taking on the world.  Whether we term it a revolution in information technology or innovation in the digital age, the society is now full of microchips otherwise known as integrated circuits (Haavind 327). Economies around the globe are embracing radical technological change by adopting telecommunication and computer technologies. The effects of these technologies have been a subject of debate in the past two decades. Some of these pundits are cheerleaders and other is critics. The proponents are worshiping the rapid revolutions in the information technology industry by pointing out the benefits associated with it while cynics are looking at the negative side of innovations. This research paper seeks to discuss matters related to the economics of microchips. In addition, it will look at the benefits of the technology together with its impacts to the environment while dissecting the future development and impacts of microchips.

A brief history of microchips

            A microchip can be defined as a semiconductor often small that transmit information through unique electronic traits. Microchips are vital components of electronics i.e. mobile phones, computers and other home appliances. The small devices have transformed and revolutionized the electronic world. Microchips are largely used in the electronic industry because of low costs associated with its production. The development microchips are traceable to the mid-19^th century. Noyce and Kilby are two persons who came up with the first microchip in 1958 (Karimi 188). Working for different companies, the inventions by the duo had slight differences. However, they came together to piece up a unified model that later became commercially available in 1961. The major discovery followed immense experiments on semiconductor devices that showed that it could as well perform the functions of vacuum tubes (VanHoose 109).

Economic benefits of microchips

            Modern microchips are often very small in size as compared with first generation chips. The reduced size levels make it easier to be used in a wide range of electronic gadgets. In addition, they can be inserted in mechanisms to save lives.  The introduction and subsequent use of microchips has brought down the costs associated with biologically centric applications. Health economics have been enhanced by the chip. Person insert microchips that contain their medical history in it and incase of incapacitation, the same can be retrieved with much ease to aid health practitioners make swift decisions (VanHoose 311).

Microchips and the environment

            The revolution of information technology, like past innovations i.e. the steam engines and electricity has quite a number of environmental effects. The effects of microchips on the environment are largely related to ways in which it will shape the nature of challenges together with the gadgets to address these environmental challenges. Considering the amount of microchips used in electronic appliances i.e. computers and fridges and the level of energy it consumes to power them, the challenges exposed to the environment by microchips are immense and it calls for public attention. The process of manufacturing microchips is often a delicate one and it requires environmental control to ensure that required purity of the process is achieved. To realize this, large amount of energy and chemical processes are required (Karimi 188). The increased levels of chemical processing and energy in the production of high tech devices pose environmental challenges.

            Moreover, there is also another environmental issue related to the disposal of information technology equipment and other appliances.  The ever changing technology implies that the usability of most electronic gadgets is short. The aforementioned led to a bulk of obsolete items that are unwanted by the masses. For example, Asia region has witnessed disastrous environmental effects from the reuse of computer machines from the developed economies (Haavind 14).

Future development and economic impact of microchips

            The positive impact of microchips often outshines the costs and the negatives associated with it. Microchips have enhanced the flow together with the capacity of crunching information to improve environmental management. The future changes associated with information technology i.e. ecommerce are better placed to boost the economic development and guide environmental perspectives of countries. For example, telecommunication presents a robust avenue of bringing down the negative environmental effects associated with the use of automobiles. In addition, microchip technology enhances consumption of electronic products which boost economic standing of economies. Moreover, the ever changing technology brings down commodity prices while widening the pool of consumption by increasing products (Haavind 14).

            In conclusion, it is apparent from the above discussion that microchips have transformed the world. Its impacts in the daily running of the world are immense. While the implications of microchips to the environment are unclear, the society needs to embrace measures that will maximize the benefits and positive effects of microchips while largely minimizing the negative ones.  That is, the precautions adopted during past technological revolutions needs to be incorporated to contain the negative environmental effects that my otherwise are brought by microchips. Finally, Economies need to formulate legislation that will prevent dumping of electronic gadgets in their borders. This will ensure that used and other obsolete electronic gadgets are collected and recycled in an environmental friendly manner.

Works Cited

Haavind, Robert. "Economics will dictate the future." Solid state technology 44.8 (2001): 14-14.

Karimi, Shahram. "Making Microchips:Policy, Globalization, Economic restructuring in the semiconductor industry." Bulletin of science 25.2 (2005): 188-188.

VanHoose, David. Ecommerce Economics, Second Edition. New York: Taylor & Francis, 2011.