The global chip shortage begins to have a major impact on the real world
2021-05-11
With the development of technology, semiconductor chips have expanded from computers and automobiles to toothbrushes and drum dryers. Demand for chips continues to exceed supply, and car manufacturers are no longer the only companies feeling the pressure.
Many companies, especially those in China, are increasing their chip inventory in an attempt to tide over the difficulties, but this makes it more difficult for other companies to obtain chips. In the past few weeks, the severity of the global chip shortage has risen by a notch, and it now appears that millions of people will be affected. Alan Priestley, an analyst at Gartner, told CNBC that ordinary people on the street will inevitably be affected by the shortage of chips in some form, which means that they cannot get some goods, or the prices of goods are slightly higher.
South Korean technology giant Samsung said last week that chip shortages are impacting the production of TVs and home appliances, and LG also admitted that shortages are a risk. Samsung said that due to the global semiconductor shortage, Samsung has also encountered some impact, especially around certain packaged products and display production. Samsung is discussing supply plans with retailers and major channels so that Samsung can allocate parts to products that are more urgent or prioritized in terms of supply. Koh Dong-jin, Samsung's co-CEO and head of mobile business, said at the shareholders' meeting in March that the supply and demand of chips in the IT industry are seriously out of balance. At the time, the company stated that it might skip the release of the next GalaxyNote smartphone.
According to the [Financial Times" report, LG said that it is paying close attention to this situation, because if the problem is prolonged, no manufacturer can get rid of this influence. Low-margin processor production has also been hit, such as those used to weigh clothes in washing machines or toast bread in smart toasters. Although most retailers can still buy these products, they may face supply problems in the coming months.
According to the Washington Post, even dog washing companies are suffering losses. According to reports, CCSI, a company that manufactures electronic dog washing kiosks in Illinois, was recently informed by its circuit board supplier that there was a shortage of chips and could no longer be supplied. According to reports, the company switched to a different chip and adjusted its circuit boards, increasing costs in the process. The automotive industry is still hit hardest. The automotive industry relies on chips from computer management of engines to driver assistance systems. Companies such as Ford, Volkswagen and Jaguar Land Rover have closed factories, laid off workers and cut car production.
