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Why Are Semiconductor Chips in Short Supply & Can It Affect You? What’s causing this scarcity and why should you care? Here’s everything we know. If you’re wondering what caused a delay in the release of iPhone 12 and why finding the latest consoles for PlaySta on 5 has been so difficult, blame it on the global semiconductor chip shortage. With the onset of coronavirus pandemic, higher demand for mobile phones, laptops and the usage of internet has increased the requirement for semiconductor chips. From non availability of consoles to delayed car deliveries, businesses across the globe are facing shortage in the supply of semiconductor microchips. South Korean tech giant Samsung Electronics , one of the world’s largest makers of chips and consumers electronics said that the world is grappling with the fallout from a ‘serious imbalance’ in semiconductors globally. Earlier, in February US President Joe Biden pledged to address the shortage which had forced US automakers and other manufacturers to cut produc on and alarmed the White House and members of Congress. But, what’s causing this scarcity and why should you care? Here’s everything we know. What Are Semiconductor Chips? Semiconductors are materials like silicon which can conduct electricity. These are also known as chips, semis, and can be found in electronic devices such as computers, smartphones,appliances,gaming hardware and medical equipment. These devices find widespread use in almost all industries especially in the automobile industry. Why Is There A Shortage? During the pandemic, millions of consumers stocked up on laptops, gaming consoles and electronic products. According to market tracker Interna onal Data Corp Sales of laptop and desktop computers exceeded 302 million in 2020, a 13 percent increase from the year before and the most since 2014. The automobile industry was shut for a few months but as the restric ons were li ed, the car sales especially in China began to increase. However, the produc on of chips was s ll low, causing an imbalance in the supply and demand ra o which triggered a global chip crisis. This shortage further spread to a range of other consumer electronics, including smartphones, refrigerators and microwaves. How Is Automobile Industry Dealing With The Shortage? The automobile industry has been hit bad with the shortage.
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