system
Given the following post, respond as if you're commenting on Reddit:
human
Why doesn't the market 'fix' the chip shortage?

Considering the chip shortage has been going on for a year or so now, I'd expect some company to step in and start producing them. Is the barrier to entry too high? Trade secrets / patents? Something else?
gpt
The supply is relatively inelastic. Fabrication plans are expensive and take years to bring into full operation. They require highly specialized equipment that is also highly inelastic in supply. Basically, high fixed costs coupled with highly specialized equipment create highly inelastic supply.