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The Global Chip Shortage and Preparing for the Future.

The Global Chip Shortage and Preparing for the Future.

Perhaps the most important component we use every day and might not even realise it are semiconductor chips. Almost everything these days require them, slowly phasing out tubes and dials that were traditionally used in most technology. Chips are faster, cheaper and more efficient, and are essential for using communication platforms such as Zoom and video streaming. They are extremely important in today’s world for keeping us connected and keeping our electronic essentials working as they should.


However, you may have noticed an ongoing scarcity with items that use them, such as video game consoles. Due to myriad reasons, demand for chips is now greater than the supply, which has had a knock-on effect across many industries. According to the economic investment firm TS Lombard, semiconductors are now considered “ahead of oil as the world’s key commodity input for growth.” With more demand than ever for chips used in equipment from cars to cell phones, the strain to meet the demand is more apparent than ever.


So what caused the shortage?

One of the most obvious reasons was the global pandemic. Overall consumer demand for cars inevitably declined during the lockdown, which caused chip manufacturers to move their focus to computer equipment - that had spiked due to more people working from home. Chip demand increased with employees needing access to equipment that was capable of performing online meetings, thus adding to the already strained demand. Some customers were hoarding supplies and buying more than they needed just in case the supply dried up. All of these factors contributed to cause and add to global disruption across several industries.


Is there an end in sight? 

At the moment it seems unlikely. Experts predict the shortage to last well in 2022, and perhaps even into 2023; this has led to products such as the PlayStation 5 being incredibly hard to obtain even a year after its initial release, which has led to a rise in “scalpers” selling units for marked up prices to desperate consumers that don’t have another option.


How we can help 

At Direct Computers, we have a free advice helpline via our Live Chat service, just in case your equipment decides to stop working. Not only that, but we also specialise in refurbishing and repairing old equipment on the off-chance you can't find a new computer to suit your needs due to the chip shortage.  

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