As we celebrate the start of the Olympics, we also celebrate the end of the microchip shortage!
You might be thinking “what microchip shortage?”
For many people, the microchip shortage has gone under the radar but it has sparked chaos across many industries. Luckily, there’s no need to panic as it seems we are coming towards the end of this shortage and fingers crossed it stays that way.
Good question – It was a combination of factors. First, it was rumoured that COVID-19 may affect the workforce of microchip manufacturers. This sparked fear in other companies that relied on microchips like Hyundai and Huawei who stockpiled all the microchips they could find. Sound familiar?
On top of that international transport was affected by Coronavirus and the Suez Canal blockage.
Finally, some other companies decided that if chips were not available they would furlough their factory staff while they waited.
Some car manufacturers have closed their factories for 2 days per week to slow down production. Manufacturers of white goods (washing machines & fridges etc) are struggling to meet demand. For example, the massive launch of the PlayStation 5 was hugely disrupted because of this shortage.
But the biggest problem (for us anyway) is that laptops, desktops and servers have either been very difficult to find or very expensive to buy.
As we come to the end of the shortage and production seems to be going back to normal, you should find it easier to get hold of the electrical goods again. Some products might take a bit more time but it all depends on the company that makes them.
There is no way to tell for sure if this will happen again as there have been too many factors play into it.
Still trying to wrap your head around why people stockpiled microchips? Give us a call on 03333 055 055 and talk to one of our experts.
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