The Global Computer Chip Shortage Has Reached a "Crisis Point"
The global computer chip shortage has now reached a “crisis point,” according to industry experts.
According to The Guardian, while initial shortages were attributable to factories being shuttered due to the ongoing coronavirus pandemic, manufacturers are still failing to meet the new rise in demand despite production returning to normal. “Chips are everything,” says Neil Campling, a media and tech analyst at Mirabaud. “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 affects every electronic product we use, ranging from gaming consoles and PCs, or televisions to smartphones, laptops, and even cars. Despite being the world’s second-largest buyer of chips after Apple, Samsung has revealed earlier this week that it may have to delay the launch of one of its high-end models. Sony expects to miss its sales targets for the PlayStation 5 this year due to supply shortages, and Microsoft also sees the supply issues plaguing its Xbox Series X to continue through to the latter half of this year. Automakers from General Motors to Ford to Nissan are all expecting their profits to slump as well.
As demand increases, Campling also notes that prices will begin to surge. “There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain,” he adds. “This will cross over to people in the street. Expect cars to cost more, phones to cost more. This year’s iPhone is not going to be cheaper than last year.”
Elsewhere in the tech industry, Acer has fallen victim to a $50 million USD ransomware attack.
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