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The Reflector, June 2021
Chip Shortage Affects Everyone by Ramon De la Cruz, Chair, Research Team, IEEE Boston Section
As if we did not have to put-up with the revolving list of shortages for certain basic supplies in 2020, the latest shortage in 2021 -besides gasoline- is for semiconductors, also known as chips. Today’s technologies that make our lives more comfortable and allow us to be communicated and entertained 100% of the time and keep us safe increasingly rely on those chips.
tive and tech sectors, but about 169 industries in some way. From steel product and ready-mix concrete manufacturing to industries that build air conditioning systems and refrigerators to breweries. Even cleaning compound manufacturing is impacted by the chip crisis. Unlike other products, advanced high-performance semiconductors can take up to 6 months to produce. This could mean the shortage may be felt up to the second quarter of 2022.
As global consumption suddenly halted in 2020, demand for chips decreased which in turn shocked the chip supply chain and its effects will likely take some And as expected with such supply constraint, price of time to recover. some products will likely increase pushing this year’s inflation even higher. If you are thinking on buying a certain new car or truck, appliance, high-end audio equipment or consumer The chip shortage will make for an interesting and unelectronics product you may be out of luck for a while. predictable 2021 holiday shopping season. But the chip shortage effects go beyond the typical high-tech or electronics products companies. According to research from one of Wall Street’s largest investment firms, the chip shortage is not just hurting the automo-
Do not know about you, but in the meantime, I am planning to weather the chip supply storm by listening to music on my vacuum tube audio gear.
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