Gradually as the US economy is trying to ricochet itself back from the pandemic depression, a perilous situation has lashed out in the technological market: the short supply of MicroChip. Microchips are those that power a wide range of products that connect, transport, and entertain us in a world more reliant on technology.
- The shortage of microchips has already been noticed through various markets since the last summer. The empty stock has made it unmanageable for schools to buy enough laptops for students who are forced to continue their education online from home due to the raging pandemic. The deficit also delayed the releases of the iPhone 12 and created crazy scrambles to find the latest video game consoles such as PS 5.
- Baird Technology Analyst Ted Mortonson said, “ We have been hit by the perfect storm and it’s not going away any time soon. I have never seen such a serious deficit in nearly 30 years of my track in the chip industry”.
- The pandemic is held liable for the chip factory to shut down their work early last year, particularly overseas, where the majority of the processors are made. By the time, the companies had again resumed their shutter, the backlog of orders had started to fill. While some blamed Trump China’s trade war who forced the blacklisting of Huawei Technologies from working on American soil as a result of a loss of a huge pile of chips from being fabricated.
- Things in the automobile industries have worsened in recent weeks. Factories are shutting down because there aren’t enough chips to finish building the vehicle that is starting to look like computers on wheels. According to recent research, this shortage of chips would make the big automobile giants lose more than $60billion in sellouts during the first half of this year.