In our day and age, computer processing chips are found almost everywhere. Moreover, it has become the norm for most people to have access to a personal computer or smartphone. The processing chip makes it possible for them and other everyday electronics to perform their respective tasks for these devices.
As technology grows and innovation rises, the world has come to rely heavily on computer chips and the technology surrounding processing power. From hand-held gaming devices to NASA supercomputers, processing chips allow us to access computing power with versatile functions. Chips have always been in increasingly high demand due to their integration into almost every electronic device, which has recently surpassed the expectations of chip producers. Due to this, there is a worrying shortage of microprocessors currently available since the supply of resources and materials has not been able to meet the demand of companies requiring chips for their products. The tech industry has even projected that this shortage would continue into at least next year, which is unfortunate news for those handling the distribution of electronic chips and devices. This affects big companies such as Apple, Intel, and other tech leaders while also significantly harming smaller companies without the capacity for adapting like their larger counterparts. Another major impact of the chip shortage is its damage to the automotive industry due to modern cars using features requiring powerful chips. With everything around us needing chips these days, the shortage is a definite problem for many companies and consumers.
How exactly did this shortage happen? One of the main reasons was the COVID-19 pandemic since it shifted planning and disrupted supply chains. Thus, it became harder for chip manufacturers and distributors to coordinate with the companies selling chip-related products. Furthermore, as mentioned earlier, the demand for chips was constantly increasing, but it had skyrocketed at an alarming rate over the past year. This made it even more difficult for chip producers to keep up with the required numbers, halting the intended plans of many companies. As a result, many electronic products are starting to sell out faster now and may even go up in price in light of the high demand.
The shortage of processing chips is daunting, and the tech industry will ultimately suffer due to this setback. Not being able to approach the demand would force a hiatus on sales and the production of devices requiring chips. However, there is some good news about the future of processing chips as technology is further expanding. People are still finding ways to create faster and more efficient chips even during this unprecedented time. Though the chip shortage will land a blow on various players in the tech world, the supply is expected to meet the demand soon, and chip-related innovation will continue to surprise.