Chip Making Industry is not able to meet up with the demand

THE CHIP SUPPLY SHORTAGE

THE REAL REASON BEHIND THE INDUSTRYWIDE SHORTAGE OF SUPPLY IN ELECTRONIC ITEMS EXPLAINED.

Technology companies have faced many challenges this year which was mainly due to the ongoing chip shortage in the whole industry. Many products like cars, game consoles, laptops, etc. use chipsets which are a crucial part of their functioning. Without the chips the products cannot work. In the industry of chipmakers a few major manufacturers are TSMC (Taiwan Semiconductor Manufacturing Company Limited.), Intel (Integrated Electronics), Samsung, SK Hynix, etc.

The Tech Industry has seen many problems which are directly linked to the chip shortages happening right now. A few products which have been very difficult to buy for the consumers due to the shortage are PlayStation 5, Macbook, EV's, etc. These produts are available in very limited quantities throughout the world due to the ongoing chip shortage. 

The real reason for the chip supply in the industry is for mainly one reason and it is directly linked to the ongoing Covid 19 Pandemic. The pandemic had forced everyone to shift their mode of working to online methods which meant that people had to have access to the internet which was only possible through electronics like smartphones and laptops. The situtaion at first brought huge amounts of demand for the electronics which people needed to access the internet like students needed laptops and phones for classes and office workers required powerful laptops to work all day long and printers and scanners. The consumption of all the types of these goods increased slowly to such an extent that companies were now having a hard time producing them. The demand had increased to a more than anticipated level such that the companies were not able to even completely fullfill the demands of their customers. On top of that they had new product release which had to be postponed due to the demand. Just to provide customers with the necessary product they had  to allocate their resources in production of their existing products.

The pandemic has really challenged each and every sector till now. The chipmaking industry did not have too many manufacturers as it is and on top of that unexpected demand rapidly went throughout to deplete the storage of the chipsets. 

The Chip supply shortage is expected to continue till 2022. Companies have invested a lot in helping chipmakers to build more plants to manufacture chips as the demand for chip is not slowing down any time soon.

Let us hope that the supply shortage can be met as soon as possible otherwise the results of the delay could prove to be devastating for companies as well as consumers.