The global shortage of chips affects smartphones: Serious problems in production are expected!

Photo Credits : Narumon Bowonkitwanchai / GETTY IMAGES

The pandemic disrupted chip production in the first quarter of 2020, causing investment disruptions and large fluctuations in the supply process, followed by large price increases. At the same time, the demand for products such as cars decreased, because people were mostly at home, and the demand for computers and communication equipment increased.

During 2020, the car industry recovered and required large quantities of chips, which could not be delivered because manufacturers reoriented to other products, creating a problem in the entire supply chain, and thus delays in delivery. Although the supply chain is slowly returning to normal, the accumulated delays in various industries create problems and prevent the delivery of products to the extent required by the market. Due to that, there are delays in the delivery of computers, consoles, cars, and we can expect them in smartphones soon.

On the other hand, we see huge investments in new factories in China, Taiwan, America, and Europe, so that in the next decade there will be enough chips for all industries.

Focusing on solving the problems of the car industry, which is one of those for which the pandemic was really hard, will surely generate problems on other sides.

By: Angelica W. – Gossip Whispers