Chester Evening Leader

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Terrifying Impacts of the Global Microchip Shortage

What will they be? And how will they affect Chester residents?

What will the impact on microchip supply shortages be? Let’s look at how automakers, smartphone makers, and video game console manufacturers will be affected. Will there be a shortage of the most important microchips in our electronics? How do we in Chester overcome the shortage? What will happen to the existing products? What will happen to the demand for them? It is not clear. But one thing is clear: the shortage is not over yet.

Impact of microchip shortages on auto industry

While the shortage of microchips may be affecting the auto industry today, the effects of this issue could be far worse in the future. Automakers could sell less than 1,000,000 vehicles this year if the shortage does not end soon. Companies may have to settle for lower-end vehicles with less advanced features if the shortage continues. Some analysts project that the shortage will last until 2022, while Fiorani expects it to last until the second half of this year. Fraud for vehicles may rocket, so make sure to get a car history check.

The automotive industry uses chips in a variety of systems, including fuel-pressure sensors, digital speedometers, and artificial intelligence-driven tools. The auto industry’s recovery would have been stalled without these chips. As a result, several major carmakers have announced significant production cutbacks, cutting their forecasted revenue for 2021 by billions of dollars. This is not a good sign for the auto industry.

Consumer electronics: Impact

Industries across all industries have felt the impact of a shortage of microchips on consumer electronics. Apple announced earlier this year that there would be a three-week wait to get its iPhone 12 Pro. Other companies, such as Xiaomi, Samsung and others, have warned of delays. As chip manufacturing capacity lags behind demand, a shortage in one industry can have a negative impact on other markets. Qualcomm, for example, sells chips worldwide to the top electronic companies. The situation is currently somewhat normal, but it is expected that the shortage will continue to worsen in the coming months.

The global shortage of computer chips is affecting many industries, including carmakers, which compete with consumer electronics companies for chip supplies. The resultant shortage has delayed new products’ release and raised prices. The shortage initially focused on the automotive sector. However, a coronavirus pandemic in 2013 has disrupted supply chains and affected consumer shopping habits. In response to the shortage, carmakers have cut back on chip orders while tech companies snap up these chips.

Smartphones: The Impact

The shortage of semiconductors is limiting production of many consumer electronics, including smartphones. The problem began several months ago, and has already affected everything from car manufacturing to smart banking. With the demand for smartphones expected increase exponentially over the next year, it will be more difficult for tech giants such as Apple and Samsung to secure chips. One tech expert believes the demand for smartphones is simply too high and that a shortage of chips is not the answer.

In January 2017, Qualcomm and CSR Bluetooth audio chip had a shortage exceeding one million units. Qualcomm stated that they now deliver in 30 weeks. CSR Bluetooth audio chip shortages are even worse. US sanctions are keeping SMIC from resuming normal production. Smartphone and tablet manufacturers may experience delays for a few months if a chip shortage continues for more than two to three years. Those delays may have severe consequences, as the entire supply chain will be affected.

Video game consoles: Impact

Microchip shortages have impacted more than gaming consoles. It has affected 169 industries, including concrete mixers and modern, gadget-packed cars. Apple is expected to suffer from the shortage, with sales of about 10 million less iPhone 13 models. Nintendo has been particularly successful during this time, as their popular Animal Crossing: New Horizons game has found virtual community among its players.

As the global microchip shortage worsens, the supply of video game consoles is becoming increasingly limited. The availability of the Microsoft Xbox Series X and Sony PlayStation 5 has been almost impossible to find. The Nintendo Switch OLED version will be even more difficult to buy. The devices sell out quickly, despite being stocked in stores. One case saw an armed robbery at a gaming store due to the shortage.


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A leading hands-on journalist who has been active in the mainstream media for over 2 decades. I live in the Chester area with my family.