Chip shortages affect you more than you think

It is believed that it will not be until 2023 that production returns to normal.
Chip shortages affect you more than you think
Image credit: Foto por Sahand Babali en Unsplash

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Entrepreneur Staff
3 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Microchips are essential semiconductor materials for creating electronic gadgets from computers to automobiles. As in many businesses, the pandemic disrupted production and, as we know, the technology industry boomed during lockdown. This caused, according to the Financial Times site, that the production companies could not cope and could not comply with the deliveries of products.

Regardless of what industry you talk about, semiconductors are a basic component in modern electronics. A single chip uses thousands, millions, or even billions of semiconductors on a single chip.

Specialists cited by Bloombrerg explain that a semiconductor is very difficult to build and incredibly small: five hundred hundredths the size of a human hair. On average it takes more than three months to make a chip and requires huge factories, dust-free rooms, million-dollar machines, lasers, and molten tin.

Manufacturers began to have problems in December 2020. Companies estimate different dates by which it will already be normal. The Wall Street Journal wrote that it would take at least 40 weeks to fulfill auto industry orders fulfilled today. It is also estimated that they will lose about $ 64 million.

The consequences for the consumer will be that the wait for some models will be longer, certain devices will be difficult to find, the products are likely to become more expensive. Samsung has reported problems sourcing its microchips, while Apple has handled the problem well for the first two quarters of 2021.

Flex is one of the largest manufacturers of microchips and its CEO, Revathi Advaithi, told the Financial Times that vaccinating the majority of the population could be a population as it may cause people to spend their money again on service and stop consuming so many electronic devices. This would allow companies more time to catch up on orders that they have not been able to complete.

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