Global Silicon Shortage : The COVID Saga
The Silicon Chips has been in hearts of the Electrical devices mostly since it was invented. The Silicon Chips are almost used in everything from Cars to Refrigerators to Mobiles to PCs.
So, what is it that is delaying the unveiling of the New Products since 2020? Well, it turns out that there has been a Global Silicon Shortage cause due the COVID-19 Pandemic going over the globe.
This famine of Silicon Chips has caused the smallest to the biggest companies to put a hold on their production rollout.
The Computer Part & The Car Shortage
This shortage has also caused computer parts and cars production shortage. This is because almost every car contains a computer part which is made semiconducting chips and guess what it is made from silicon. Thus, if there are no new silicon chips there is no new cars and the same also applies to the computer parts.
The Cause, The Solution & The Outcome
The current chip shortage has been mainly caused by the COVID-19 Pandemic. Because, when the pandemic emerged many chips, factories were forced to temporarily halt their operations.
Those factories who managed to keep their factories open dealt with a terribly slow production of chips due to workers restriction.
Lower car sales meant lower chips orders to the manufacturing companies which also meant lower production of chips which was good as the factories were also not able to provide large quantity of chips due to COVID-19 Restrictions.
But as the COVID-19 restriction levied off the orders for the cars and computer parts started to boom which was not very precented by the companies and led to a chip shortage as the companies were no longer giving orders to the manufacturing companies and at once they wanted a hoard of these chips which the manufacturing companies were not able to be provided due to obvious reasons.
A finished chip would take around 6 to 26 Weeks to complete. Thus, the manufacturing companies were not able to provide large amount of chips at once and this led to a silicon shortage. As, the automobile industry was the one who drastically reduced the orders the manufacturing companies are making them pay off by working more towards the consumer electronic sector and ignoring the automobile industry.
