Tech Shortage Looks to Continue

Tech Shortage Looks to Continue

If you’ve been one of the frustrated few hoping to get your hands on one of the next generation consoles from either Sony or Microsoft as gaming options just like these for example continue to thrive, or even hopeful to grab the newest phone, you may have been met with out-of-stock messages and shortage alerts at every turn, and even for bigger tech if you’re hoping to grab yourself a flashy new electric vehicle you may have seen more of the same. The shortage comes as the plants that produce the vital semiconductors that are present in all of our devices were forced to come to a standstill, whilst some big tech companies were able to build a surplus that delayed the shortages the warnings continue that this shortage could last until 2022 at the earliest and fears it could go much later on. There are now other fears, however, that the shortage could last a little longer. Let’s see more on tech shortage looks to continue.

Capacity doesn’t simply catch up – Part of the problem with the shortage is that many of the plants were already operating at capacity to meet the demand, which means when the closures first happened the lack of production means those chips simply fell out of circulation. Anything produced now as plants reopen are there to continue meeting the demand now set forward, and anything no produced in the past year is simply something that can no longer be covered. With newer warnings that some plants could look to close once again with newer outbreaks, capacity could slip once more.

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Closures may help the issue a little, however – There has been news of some plants for other industries having to close due to these shortages, however, one of the most recent had been within the Hyundai car manufacturer in Alabama as the semiconductor shortage couldn’t meet the demand, and whilst the closures do mean that production stops in this instance for the cars, it does remove the demand throughout the period of the closure which may help a little. It’s still a difficult issue, but these temporary closures at least lighten the load.

Demand is picking up, leading to further shortage impacts too – As the world starts to return to normal with lockdown measures easing and being removed completely alongside working schedules becoming the same as they had been prior to the pandemic, it also means that demand increases once again. It has been warned that the 2022 estimates may fall a little short as the demand increases, and the date could be pushed further back once it finally becomes realised just how impactful the changes are and the increasing demand is with it being at least a few years until capacity can be reached and demand met once more.

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