Dallas, TX, United States, 08/31/2021 / News Bureau /
Chips are now being used in millions of devices like cars, washing machines, robots, and many others and are also known as semiconductors. But with the transformation of the tech industry and users’ increased influence on the usage of technology, the demand for chips in electronics and other devices has increased, causing the shortage of supply.
The effects of this shortage can be seen in big brands like Apple as it stated that the shortage of supply of chips might lead to the sales of Apple products. The surprising fact is that the associated chip companies and those firms that don’t have any usage of chips in their products are also getting affected, for example, CSSI international, a production unit for dog-grooming machines.
Those cars that have higher use of chips are now in short demand in the market, causing the rates of vehicles to go up. We should know the importance of chips in the tech industry. The products in which chips are being used are sometimes associated with hundreds of chips and now imagine what kind of setback will occur to such companies if the shortage of supplies continues.
A musician from North Warwickshire named Kris Halpin seems quite disappointed by his experience of such a shortage. He has currently leased a car through a mobility scheme according to which he has to replace the car as the lease ends that will happen in October. Still, the company has told him that he would get his car by the next year in January because of the shortage of chips in the market.
“As a disabled person, I am reliant on my car,” says Mr. Halpin, who uses a wheelchair. “Where I live, I literally couldn’t get beyond my drive without my car.” But the company has extended the time for the lease until he gets his new car which is quite generous of the company. As Christmas is approaching, there is a prediction that if the shortage of supply remains the same, then cars and the production of other products will also suffer. Piotr Esden-Tempski is the founder and owner of 1bitsquared, a US-based firm that specializes in electronics hardware. His company makes electronic boards that allow students and other users to connect many appliances to their computers. Currently, he has many orders for its production, and Piotr faces the same issue of shortage. According to his suppliers, they need semiconductors that cannot be at least for 12 months for the products. Now we can better understand how every business is suffering and will suffer if the situation remains the same. “You cannot just assemble it and miss one part. It won’t work,” Piotr Esden-Tempski says. It is not the method of months, but this situation has been developing for years.
Koray Köse, an analyst at Gartner, says ‘Among the pressures facing the chip industry before the pandemic was the rise of 5G, which increased demand, and the decision by the US to prevent the sale of semiconductors other technology to Huawei. Chipmakers outside the US were quickly flooded with orders from the Chinese firm.’
Seda Memik, professor of electrical and computer engineering and computer science at Northwestern University, says, “It will take multiple years to accomplish… a better balance.” She also says that the pace of demand for chips has been rising so strongly that a shortage was, at some point, “inevitable.”
From these facts, we can conclude that the shortages and delays are expected in the coming months more strongly.
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