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Bad News for Tech as Global Semiconductor Shortages Continue



Bad News for Tech as Semiconductor Shortages Continue

After a difficult 2020 there were big hopes that things could get back to normal as quickly as possible, despite this there had been continued warnings that the tech and automotive sector would see further difficulties as semiconductor shortages could last for a number of years into the future, but other warnings have continued to trigger as newer outbreaks could leader to exacerbate the global chip shortage currently being experienced – but what does this mean for you?

Renewed demand continues to strain supply ­

Manufacturers of the latest gaming consoles and mobiles have already warned that increasing interests as the world gets back to normal has already had an impact, whether this comes from changing legislation in certain gaming sectors with adjustments to the likes of NJ online gambling causing an uptick in new users.

The latest E3 announcements leading many hopefuls to grab their newest consoles – supply had already been strained at best, and with renewed interest and the growing demand there simply isn’t enough supply to keep up, although the CEO of Sony recently put out a statement suggesting the shortages could last until well after 2022, these could have been conservative estimates as the more realistic number is expected to be a little worse than that – and the true extent may not be known for some time yet.

Global Semiconductor Shortage

Automotive shortages will be shown in a smaller scale

It was recently announced that the Hyundai plant in Alabama would have a temporary shutdown due to the shortage in one of many reports that production may need to be halted in the shorter term, and although other names like

Tesla managed to snatch up some additional capacity before the shortage really hit hard, further delays in supply could have further impact on the still growing demand in this space too as has already been shown and supply has always been a big issue in this specific space further delays only go to hurt global goals with the shift to EV for example.

Emerging cases could make things much harder

It has been noted over the course of the issue that when capacity falls it’s not simply a case of increasing the production capacity as most plants run as close to the edge as they can – it recently emerged that growing cases in Taiwan which is a significant hub for the production of chips could lead to further problems too, whilst many of the big tech companies are saying they’ve not yet been impacted by this.

It’s also unclear if these latest impacts may cause further issues beyond the already warned 2022 issues that are likely to be facing the big companies throughout the remainder of this year and well in to next year too.

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