{"id":2176,"date":"2021-08-09T15:30:18","date_gmt":"2021-08-09T19:30:18","guid":{"rendered":"https:\/\/www.pwvconsultants.com\/blog\/?p=2176"},"modified":"2021-08-09T15:30:20","modified_gmt":"2021-08-09T19:30:20","slug":"the-chip-shortage-isnt-going-anywhere","status":"publish","type":"post","link":"https:\/\/www.pwvconsultants.com\/blog\/the-chip-shortage-isnt-going-anywhere\/","title":{"rendered":"The Chip Shortage Isn’t Going Anywhere"},"content":{"rendered":"\n

The chip shortage started with the pandemic. Now, setbacks at factories and supply chain shortages mean that even when there is supply, delivery will be slow.<\/h2>\n\n\n\n

The coronavirus pandemic changed the way the entire globe functions. It forced us into our homes, the vast majority of the world on lockdown. We still tried to keep our lives going by working remotely, telehealth, virtual education, virtual events and anything else we could come up with to retain some semblance of normalcy. In our efforts to do this, our use of electronics and electronic devices increased substantially. All of those devices use computer chips, along with a multitude of other items we use every day. But when we were sent home, chip makers sent their employees home too. And now we have a chip shortage, which doesn\u2019t look to be going anywhere anytime soon.<\/p>\n\n\n\n

Semiconductor chips are used in many ways. Automobiles. Planes. Boats. Computers. Phones. Toys. Any Wi-Fi enabled device. Almost everything we touch and use on a daily basis has a chip in it. It\u2019s not something we think about, but there it is. We\u2019ve had a chip shortage for a while, and many thought that with the world reopening, we would see some relief soon. However, that does not seem to be the case, and there are a few factors adding to the problem.<\/p>\n\n\n\n

The primary factor contributing to the chip shortage is clearly the pandemic, if people can\u2019t go to work and do their job, then there\u2019s no product to deliver. A secondary factor is also a subsequent result of the pandemic, which is supply chain issues. There\u2019s a shortage of truck drivers in the US, and likely worldwide, so even when there is some supply, it can take extra time to get delivered. If you\u2019ve ordered anything online in the last two months, you have seen this first-hand. <\/p>\n\n\n\n

Two additional problems contributing are the fire at a semiconductor chip manufacturing location in Japan, and the recent lockdown of Malaysia. Both of those are setbacks, as well as gas contamination<\/a> at a factory that makes Apple processors. That last one is said to have been addressed quickly and should not impact production, but that remains to be seen.<\/p>\n\n\n\n

Some experts are saying that we\u2019ll see an uptick in chip accessibility in the final quarter of the year, while others say this shortage will last through 2022. Automakers are sitting on thousands of cars<\/a> that can\u2019t be sold because they don\u2019t have chips. Some automakers have had to make cutbacks<\/a> due to the shortage. It\u2019s something that many are intrigued by yet no one can predict. Especially because we have the supply chain issue around shipment of these chips, even when factories begin making a dent in the shortage, there\u2019s no telling how long it will take to get those chips distributed.<\/p>\n\n\n\n

Let\u2019s also remember that there is a shortage of other parts and supplies across the globe. Manufacturers, even automakers, are struggling to get plastic, steel and other parts as well as chips. So even once chip manufacturers get this under control, companies have to have the rest of their parts in order to complete their products. <\/p>\n\n\n\n

One thing is certain, the chip shortage likely isn\u2019t going anywhere anytime soon. Those who are banking on a change by the fourth quarter are going to be sorely disappointed because, even if everything goes 100% smoothly, we\u2019re so far behind that it\u2019s unlikely to happen. We discussed a while back that Intel CEO Pat Gelsinger believes the shortage will last at least through 2022<\/a>, and if we have setbacks along the way, it\u2019s going to take even longer. It\u2019s pretty safe to say that there will be more setbacks, too, as we see the Delta variant spreading like wildfire across the globe and there are even other new variants that haven\u2019t reached newsworthy status yet.\u00a0<\/p>\n\n\n\n

With all of the issues around semiconductor chips and getting parts and the supply chain problems, it\u2019s really important for businesses to take good care of the equipment they have. Machines need to be maintained, kept up-to-date and in good physical condition. Vehicles should be well cared for, maintained and strictly used for business purposes. If you think your business won\u2019t be affected by the chip shortage, you\u2019re wrong. It\u2019s already affecting industries on a global scale, so don\u2019t get caught by surprise. Make sure your business doesn\u2019t lose a step because of an outside problem you have no control over. Call your experts and make sure everything is in top-notch working order before you need to replace something and can\u2019t get it in a timely fashion.<\/p>\n","protected":false},"excerpt":{"rendered":"

The shortage of semiconductor chips continues to be hampered by the pandemic. Supply chain shortages plague all industries.<\/p>\n","protected":false},"author":1,"featured_media":2187,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1867,2231],"tags":[36,2402,1683,2271,2401,2276,2395,571],"yoast_head":"\nThe Chip Shortage Isn't Going Anywhere - PWV Consultants<\/title>\n<meta name=\"description\" content=\"The shortage of semiconductor chips continues to be hampered by the pandemic. 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