Throughout the pandemic, shortages have been one of the most common frustrations. Toilet paper, eggs, and common sense have all been in short supply across the world.
But one industry seeing shortages that you may not have noticed is chips. No, not the potato kind. The tech kind.
The global chip shortage has been impacting businesses across the world. Before March of 2020, chips took six to nine weeks to deliver to companies, but the delivery time has become longer and longer. And now, over a year later, lead times for the chip are up to 26.5 weeks on average.
For a business making millions of products a year, that’s a long time.
What does this mean for the average person, though? Chips are everywhere, so we’ve seen a shortage of everyday items and essential tech services.
Chips is an umbrella term that includes many different pieces of equipment. Each provides various functions, which we won’t discuss in this article, but here are just a few types:
- Memory Chips
- Mixed Circuit Semiconductors
You might be aware of the PlayStation 5 shortage. Gamers have been losing their minds trying to purchase a console ever since Sony released it last year. Restocks are competitive, and even if you’re willing to shell out $500 for a console, you might not be able to purchase it.
They’re hard to find because of the chip, specifically semiconductors, needed to make the product. Even if Sony wanted to end the shortage, they don’t have the semiconductors to do it.
The PS5 market is just one of many results of the global shortage. Every industry, from healthcare to dog washing, is feeling the impact.
The chip shortage has hit the auto industry most of all. Cars rely on chips for multiple different functions, many of which are high-end features that make cars unique. Ram Trucks, for example, have stopped including its high-tech rearview mirror that monitors blind spots.
Many auto manufacturers have laid off workers and even shut down factories altogether because of the shortage. Other impacts of Covid-19 have played a part in this, but the chip shortage keeps the pandemic rebound many other industries are experiencing from happening.
Unfortunately, it seems that the shortage won’t end anytime soon. Higher costs and longer wait times are here to stay for at least a few more months. Researchers have even suggested the global chip shortage could last until 2023.
Hey, but look on the bright side, potato chips are still here.
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