Global Chip Shortage

Have difficulty finding that audio amplifier, graphics card or console you’ve been saving up for? Here’s why.

We’re sure you’ve caught wind of the global chip shortage impacting multiple industries since 2020. With 2022 in full swing, we’re still no closer to seeing relief from this crisis. Why is this?

Multiple factors have impacted the manufacturing and distribution of semiconductor chips – with COVID-19 being the primary reason.  Lockdowns led to the shutdown of multiple chip production facilities, but this isn’t the only role the pandemic played in the shortage. With the increase in remote work and remote learning, there was a massive spike in the demand for computer and network peripherals – further straining the supply.

Adding to the above, some smaller but significant factors also contributed to the shortage: The China-US trade war in September 2020 imposed restrictions on China’s largest chip manufacturer, SMIC. This put pressure on other manufacturers to produce on a larger scale – many of which were already operating at maximum capacity.

Weather and fires were the cherries on top, with a severe storm forcing the closure of two American facilities owned by Samsung and NXP Semiconductors. Further to this, fires destroyed two Japanese manufacturing plants in October 2020 and March 2021.

Predictions show that the shortage will continue throughout 2022 and well into 2023.

If you’re in the market for a new home entertainment solution or looking to upgrade your existing network – be sure to schedule these well in advance to ensure your stock is available when the time comes.

Feel free to contact us for further info or guidance.

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