There is a great shortage of chips around the world. Business is very difficult for automakers, especially.
Deficiency is related to a variety of factors, one of which is the ongoing pandemic.
It is possible that this shortage could have an impact on the tech products you plan to buy this year.
If you budget some money to make a big tech purchase this year, we have news that could be important. According to a BBC article, we are in the midst of a major global chip shortage.
This deficiency can affect all sorts of different markets. In fact, automakers face most of the problems in response to shortcomings. The average car often has over 100 microprocessors running everything from the stereo to headlights. Automakers are scrambling to get those chips, which slows down the launch.
For the general technology we often cover here in the Android Authority (smartphones, tablets, laptops, smartwatches, etc.), things are not so serious. However, that does not mean that shortages will not cause problems later in the year.
Chip Lack in 2021: What Happens and Why?
According to the BBC, this shortage is essentially a perfect storm of various problems. Clearly, the ongoing COVID-19 pandemic plays an important role. But there are two other problems that, when combined, cause the industry to spin.
The first problem is the sharp increase in new high demand products from 2020 relying on 7nm silicon. One of the reasons that the Xbox Series X / S, PlayStation 5, Nvidia’s newer GPUs, etc., are very difficult to come by is because there are not enough chips to get them out of line.
Related: A History of Qualcomm 800 Series Chipsets
The second problem is directly related to the automotive industry. By 2020, car sales took a big drop, and in response, automakers cut their silicon orders. However, demand for cars suddenly plummeted by the end of the year, prompting both automakers to place urgent orders for new chips.
When you add those two problems to the COVID-19 pandemic, you get the big chip on the 2021 chip.
Does this mean that phones will be scarce?
The two big players in the smartphone world, Samsung and Apple, are now focused on 5nm chips. These chips do not look as brittle as other versions. Also, Samsung is the largest semiconductor manufacturer in the world, so it will clearly give priority to its own products.
However, smaller market players may face problems associated with chip deficiencies. This may result in a lower number of phones than expected when it was first launched. This can also result in higher prices as smartphone OEMs want to increase revenue to combat the expected collapse of the moving unit. However, this is speculation. There is no indication that getting the latest smartphone is as complicated as getting a PlayStation 5, for example.
The important thing to keep in mind, right now, is that this lack of chip is happening and can affect consumers as the moon moves. If you are planning to make a big tech purchase this year, you will want to keep an eye on this issue by continuing brewing.
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