Computer chips in this day and age are the centrepiece of all the digital products that surround us. From washing machines and video games to cars and smartphones, the ongoing chip shortage is slowing down the rate at which the population can consume digital products.
Lockdown boosted sales of computers and smartphones due to the massive increase of companies moving to a work-from-home initiative. At the same time, other gadgets were also bought to help bored kids and adults occupy their time off. With the possibility of another Lockdown looming, this ongoing chip shortage is becoming a problem.
Unfortunately, the ongoing chip shortage is predicted to go on until 2022, possibly 2023; there is hope the situation will improve mid-year depending on supplies and the available rate coming forward, but the first six months of 2022 could still see a lapse in supply throughout the industry. Many industries are feeling the full effect of this shortage, and the leading semiconductor manufacturers are working their hardest to improve the supply of products worldwide. Companies are spending billions on increasing their capacity to meet the demand.
Manufacturers of graphics cards, kitchen appliances, phones, cars, computers, and games consoles continue to struggle to get a hold of semiconductors essential to electronic devices.
Caching in your chips
Unfortunately, globally, we have continued to feel the effects of the stockpiling epidemic, with many companies still reeling from the amount of stockpiling of chips and the sanctions put in place to abate the situation.
The largest contract manufacturer for semiconductor chips, Taiwan Semiconductor Manufacturing Company (TSMC), has reported raised prices by 10% for advanced chips. In contrast, less advanced chips that we see used in the automotive sector would cost 20% more.
New Omicron variant and what it means for the industry
The recent announcement of the new COVID-19 variant has swept through the world, let alone the industry; many companies are asking themselves what this means. We were all starting to pick ourselves back up again from the previous economic crash.
This chronic shortage of chips has set back production times for many different industries, such as the automotive industry. Nissan has said that ”it is too early to say when normal deliveries will resume let alone finished manufactured cars.”
Rolls Royce is a company that supplies vehicles to many different sectors across the world, such as our military, so this shortage is not only affecting cars and computers; it is affecting the running of everyday life as well as public safety.
Following the closure of several semiconductor manufacturing companies from the 2020 pandemic, a backlog has built up, leading to a further delay in production times.
What is Origin Storage doing?
Origin Storage is still working hard to assure you that we are doing as much as possible to supply you with the parts you need and for any customers you have. We pride ourselves on our multifaceted offering: affordable, high-quality, and compatible components that last and do not invalidate OEM warranties.
If you have any questions or would like assistance with your order, please get in touch with us, and a member of our team will be happy to help you find the parts you require.