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Warnings That Semiconductor Shortages Could Last Years

Photo of circuit board and semiconductors

Whilst there has been a lot of turbulent news over the past year with the ongoing health crisis, but as the world looks to start heading back to a period of normalcy as many countries are well on the way back to recovery, other cracks have started to show. One of the biggest identified back at the start of the year had been with the ongoing semiconductor shortage as warnings have now been issued suggesting the shortages could potentially last for years and have a huge impact on the consumer hardware and electronics market. But which could be the hardest hit?

Global PC hardware continues to struggle

PC hardware has been in a bit of a tough spot for a while now, the use of crypto has been finding increasing success over the past few years with an announcement from the likes of Tesla for support before changing their mind due to environmental concerns and the growing use within online services.

Global Chip Shortage Effects on the Gaming Industry

Few people realize just how many computing components are in the gaming hardware we know and enjoy playing. Be it a gaming console or here in Las Vegas, the thousands of modern slot machines providing entertainment or particularly the components used in online gaming like those found in online slots.

All of these machines mean the sales of key components like graphics cards have sky-rocketed in recent years. The entire market has seen a number of shortages during the past few years, but the semiconductor shortage has only grown worse with enthusiasts finding it incredibly difficult to get their hands on new GPU releases without turning to the scalpers who have pushed the prices extremely high – it was the CPU maker, Intel that suggested these concerns, however, with production capacity in the U.S being at just 12% of global output, down from 37%.

Shortages will hit the automotive industry too:

It’s easy to forget that modern cars require thousands of these semiconductors as they’ve become more electronic than mechanical, and particularly as electric vehicles are growing in popularity too – many of the biggest names already struggle to keep up with growing demand, but this shortage could mean that targets set out for the next few years could be much lower, and with countries such as the UK having guidance to end the sales of traditional internal combustion engine vehicles by 2030, this shortage could have an impact on reaching that target if it does last for a few years. 

It’s also important to note that these shortages aren’t something that can be flicked like a switch – once production capacity starts to fall, the impact continues to cascade. With production falling, production capacity targets will remain low until the shortages can be covered – it hasn’t been helped by the fact many companies bought up additional capacity early on too causing longer shortages for others too, which may be a reason why production schedules have been pushed even further down than they were before.

More on this topic:

Using Automated Inductor Cross-Reference Tools for Procuring Safer and Cheaper Electronics

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