You may be wondering what am I talking about in this blog? .Chip shortages .Yes you heard it right
 
What is chip shortage? 

Let me explain chip shortage in simple words .
 
It is basically a shortage of semiconductor materials that are going in the chip manufacturing process .

Silicon is an example of semiconductor material which is commonly used in chips

There’s a concept in commerce called law of demand which states that “Lesser the supply , More the demand". This law applies here also.

The demand for chips is rising in electronic industry.
 

 So when did the chip shortages start?

The chip shortage started during the year of 2020-2021 and is still ongoing .
According to TSMC 1  .The chip shortage may continue till end of 2022*



What factors led to the shortage of chips?

  • As I told you there is a more demand for electronics .Silicon industry is a very big industry one minute particle of dust can affect the whole manufacturing process. Chip production costs are rising steadily.
  • The major reason was the COVID-19 pandemic which saw the temporary closure of the factories around the world.
  • Thirdly the competition in electronics industry between giants
    Desktop/Laptop microprocessor - Intel , AMD  
    Mobile processor manufacturers - Qualcomm , Mediatek and other chip player companies.

 Effects of chip shortage on the electronic industry 

  • Car makers like Tesla which makes use of advanced technology in their cars are worrying due to chips going short.


  • Smartphone maker Realme claimed that that they weren’t getting enough Snapdragon 720G which is used in Realme 8 pro device due to the chip shortage and also complained that Qualcomm wasn’t prioritising the contract of supplying chips to them

  • Blackshark 4 pro has also been a latest victim due to the unavailability of Snapdragon 888 chipset which is used in extreme high performance phones.Currently It's out of stock.



  • The chip shortage was unkind to Apple Inc too.
Effects of chip shortage on the consumers.
  • Products /Gadgets going out of stock due to high demand whenever desiring to buy them.
  • Cost of product is much higher than the material itself.
 References:
 
1 - TSMC  - Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company which is specialized in chip manufacturing.

*-Estimated year it may be in 2022 or even more