The Semiconductor Shortage Is Affecting Products Worldwide – When Will It End?

The Semiconductor Shortage Is Affecting Products Worldwide – When Will It End?

As we approach the summer and more than a year since the pandemic began, it seems like there is no end to the shortages that seem to be a staple piece of pandemic life.

The reasons for the various shortages are complex, but mostly fall to issues with production and the stockpiling of products as consumers and businesses alike try to “weather out” the various (and sometimes self-created) storms.

The shortages are interlinked with each other as well, it doesn’t seem like a shortage in lumber for instance would be tied to the semiconductor shortage but in a way it is. Ramping up production often requires a ramp up in machinery and that machinery is powered by computer chips.

Consumers are also feeling the shortages when it comes to auto sales, with used cars being worth significantly more than they were pre-pandemic.

Now in addition to cars, we’re seeing shortages in televisions and refrigerators that also use the chips. Appliance delivery is being backed up for months for some consumers. Homeowners and would be homeowners across the country are feeling the pinch on all sides with shortages in both appliances and lumber.

Also, not exactly connected to the semiconductor shortage but in the computer sector we’re also seeing shortages with hard drives, driven by the new cryptocurrency Chia.

While being advertised as an “ecofriendly” crypto, it’s been found that the mining of Chia can burn out a drive in a matter of weeks. Prices of drives are skyrocketing in response (if you’re able to find hard drives to purchase at all).

In a nutshell, buying a computer right now could be difficult and more expensive.

So, what are chip manufacturers doing about it? The world’s largest chip manufacturer, TSMC (Taiwan Semiconductor Manufacturing Company), has been quoted as saying they expect to catch up to the automotive demand for chips by June. Although some speculate this is highly ambitious.

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Beyond the automotive sector, Samsung is considering delaying the release of the latest Galaxy phone series while shortages remain. Manufacturers will have to work with the capacity limits for production by suspending or delaying certain product launches.

As for the chip manufacturers themselves, it’s expected production will increase eventually while demand may cool as life returns to normal in many sectors of the country. It’s expected a leveling out will occur by 2022 with consumers and business’s alike having to work around the shortages in the meantime.

If your business needs to replace computers or computer parts, we can help. We have connections that may assist with getting products more expediently than you can get on your own and with closer to normal pricing. Contact us for a consultation here.

Looking for more to read? We suggest these tech articles from the last week.

This article was powered by Valley TechLogic, an IT provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://twitter.com/valleytechlogic.