Unfortunately, the parts shortage which has been happening since the beginning of 2020 is still with us and is likely to be with us for some time.
Nvidia’s CFO Colette Kress explained that the company expects demand to “continue to exceed supply for much of this year”. Similarly, chip manufacturer TSMC, who makes processors for Apple, Qualcomm, and AMD, has warned that shortages could continue into 2022. Intel’s chief executive, Pat Gelsinger, says the worst is yet to come and that we may have to wait a year or two until supplies return to normal. Glenn O’Donnell, a vice president research director at Forrester, believes the shortage could last until 2023. The general consensus is that the world will have to grapple with the crisis for longer yet.
The semiconductor shortage, what some are calling “chipageddon”, has affected a variety of industries. Manufacturers of graphics cards, kitchen appliances, phones, cars, computers, and games consoles struggle to get a hold of semiconductors essential to electronic devices. You can learn more about the origins of the semiconductor shortage here.
“Chipageddon” is a result of a variety of factors. Coronavirus lockdowns in China caused production to reduce significantly for a period of months at a time when demand for everything that kept us entertained during lockdowns, such as TVs, games consoles, phones, and other electronics, skyrocketed. It is the perfect storm, and it’s meant that prices of electronics have increased, and almost everyone will be affected by it in some way, shape, or form.
Stockpiling and new cryptocurrency increase demand
The situation shows no signs of abating just yet. Stockpiling has made the situation worse for firms that are struggling to get hold of precious chips. Some Chinese companies which have been affected by sanctions have taken to stockpiling in-demand chips in an attempt to ride out the crisis, intensifying the crisis for companies all over the world.
Stockpiling isn’t the only thing causing significant increases in demand. The cryptocurrency Chia, which was launched in May of this year, caused SSD demand to skyrocket. Chia relies on storage rather than processing performance to mine, and crypto-fanatics were keen to buy up huge amounts of storage to mine the cryptocurrency.
Manufacturers desperately search for a solution
Chipageddon is causing chaos for industries all over the world, and the leading semiconductor manufacturers are working hard to improve the supply of products. For example, The Taiwan Semiconductor Manufacturing Co., one of the leading advanced semiconductor suppliers, is planning to spend approximately $100 billion over the next three years to increase its capacity to meet demand.
Find the right solution with Origin Storage
We want to assure you that we are doing all we can to make the parts you need accessible to you and your customers. We pride ourselves on our multifaceted offering: affordable, high-quality, and compatible parts that last and do not invalidate OEM warranties.
If you have any questions or would like assistance with your order, please get in touch with us, and a member of our team will be happy to help you find the parts you require.