Computer Chip Shortage Crisis
July 26, 2021 | 5G
A worldwide shortage in semiconductors has led to consumers facing rises in prices and scarcity of products. These products include televisions, mobile phones, game consoles, and even cars. A semiconductor chip is essentially the brain of an electronic device; therefore, the steady decrease of materials has had major implications.
The initial problem arose from temporary delays in supply production, due to factories being shut down as a result of COVID-19. Though chip production is now back to normal, semiconductor availability is still reaching a point of crisis. This is due to a surge in semiconductor demand, resulting from changing consumer habits fueled by the global pandemic. The escalation of demand is a direct result of car manufacturers investing in tech-heavy electric vehicles; as well as, the rise of smart television, 5G-enabled smart phone, computer, and new video game console purchases.
Even Apple, the world’s largest buyer of semiconductors, was forced to delay the launch of their iPhone 12 because of the shortage. The immense shortage has led to major companies like Microsoft, Sony, and Ford to not reach their sales targets. Currently, there is no sign of supply and demand leveling out or catching up. Because of this, experts say to expect car, phone, computer, and console prices to continue to increase.
To learn more about the semiconductor crisis visit Worsening Computer Chip Crisis Shows Supply Chains are Still at Risk at Forbes.com.