The crisis of microchips on the market

The effects of the pandemic are significant in the technology sector and today that the world economy seems to be recovering from the blow suffered in 2020 and also in the first part of 2021, there is a shortage on the market of the raw materials necessary to make the chips, generating a negative effect in the production of cars, video cards and smartphones. The partial or total closure of large international foundries, such as TSMC, Samsung and Intel, has produced a net cut in production, causing a cascade effect on the entire technological sector which obviously depends on the chips to be able to work.

For example, the delay in the launch of the Iphone 13 was caused precisely by this scarcity of material, without a chip a smartphone cannot work, as well as new generation machines, now full of technology, or TVs or computer components. . The news may seem very insignificant for those who are not aware of the operation of the industrial machine and who perhaps do not know what a chip is or what its function is. A chip is a small, powerful electronic brain that controls and manages the operation of the entire machine. Without a chip, it is not possible to allow the ignition and correct operation of a smartphone or any other machine that uses a minimum of technology.

If cars were produced like in the 80s, then the sector would not have been included in this microchip crisis but today everything is technological, from satellite to parking sensors, from turning on lights to electric windows. It is estimated that 1.3 billion smartphones were produced in 2020, almost 10% less than expected, so companies were also made for 2021, wrong prediction because the demand for smartphones has increased and they are requested about 1.5 billion. The same applies to cars and the computer sector, which is why the demand on the market for microchips is insufficient with a consequent increase in price on average by 10-15%.

Microchips companies are expanding companies for more production but the effects will only take place next year, so beware of the cost of electronic devices.