New Global Crisis: Shortage of Chips and Price Growth

The global shortage of chips has led to an increase in the price of electronic products, especially components such as integrated circuits. If you have been following the technology news, you know that global production has long been relatively severely disrupted due to logistical problems and, consequently, reduced production capacity of chips and semiconductor components. With the outbreak of the Corona virus and quarantine, electronics such as TVs, laptops and tablets have been in unprecedented demand from buyers. Also in the beginning of the epidemic and the closure of factories, at first we only had the problem of delaying the supply of raw materials.

Today, factory production is back to normal, but the corona epidemic and the resulting lifestyle changes have exacerbated the crisis.

Multipied factors have contributed to the sharp growth in demand for electronic chips in the market; Including automakers investing in advanced electric vehicles, multiplying sales of TVs and computers, unveiling new game consoles and mobile phones equipped with 5g technology.

Neil Campling, media and technology analyser in mirabaud, has said: “chips are everything,” adding that “there is a perfect storm of supply and demand factors going on here. But basically, there is a new level of demand that can’t be kept up with, everyone is in crisis and it is getting worse,”

The shortage of chips seems to continue in the world. Morever, for setting up an advantage factory it takes two years and producers plan to increase the price of their products for the second time in less than one year.

In addition, the producers’ ignorance of the current crisis, as a result of not being ready to implement the right solutions to overcome the crisis, can make things more complicated for domestic producers and make the situation more difficult for the customers of these industries.

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