A global shortage of computer chips may not seem like it’s going to affect your life in any way, especially if it’s not in your plans to buy or fix a computer any time soon. However, these chips are in fact used in a lot of common products all around the world, from cars and smartphones to washing machines and toys, computer chips are massively important.
One of the biggest problems facing supply chains at this very moment in time is a pandemic-driven shortage of silicon computer chips, and here’s what will be affected:
PlayStation 5’s, even two years after its release, are still near-impossible to buy unless you’re willing to fork out an extremely inflated asking price. So, why is there such a limited amount of PS5’s available straight from retailers? Well, this is where the computer chip shortage takes effect. In July, Sony CEO Jim Ryan told Reuters that being unable to meet demand ‘makes [him] feel bad’, and until the chip shortage is resolved, I don’t see PlayStation 5’s from being any less limited.
The chip shortage isn’t just impacting PlayStation 5’s and games consoles, its effect spreads to any product which requires a computer chip. The automotive industry, in particular, has been badly hit, with car sales in the EU falling to record lows. A lack of new car stock has boosted car prices as a result of the increased demand for used cars. Manufacturers are looking for creative ways to circumvent the chip crisis. For example, BMW is building some cars without touchscreens due to the shortage, according to AutoBlog, and Ford is attempting to build chips in-house.
Experts unfortunately are saying that the continuing disruption could likely lead to price rises. The British Retail Consortium’s Andrew Opie said ‘Issues in global shipping and the ongoing microchip shortages [are] making it more difficult for retailers to source products, as well as driving up costs, ultimately meaning consumers may end up having to pay more.’
With some people saying they will last well into 2022 or even later, chip problems aren’t expected to be resolved any time soon. The CEO of computer chip manufacturer Intel told CNBC that ‘we’re not going to see supply-demand balance until 2023’, though he did say things will get ‘incrementally better’ until then.
What’s causing the computer chip shortage?
Many experts say that a wide range of factors are at play, although there is no doubt that pandemic-related disruption is thought to be a leading cause. Smartphone manufacturers placing large orders of chips in 2018, a lack of investment, natural disasters, power outages, and the inherent complexity of creating something as complicated as a silicon chip are all contributing factors. The situation unfortunately doesn’t seem to be easing either. The chief executive of Nissan recently told the BBC that he couldn’t see an end to the shortage and that the emergence of the new Omicron variant could ‘add pressure’ to manufacturers.
A way to at least reduce the severity of the situation is to look towards the second-hand market. Buying everything brand new is not a necessity and second-hand or refurbished goods can offer better value for money, at the small sacrifice of your product arriving in a shiny new box.
The best advice we can give is to try your best to make do with your older technology until the shortage has passed by. If you were planning to upgrade your current phone, games console or washing machine, the best option, for now, would be to hold your horses. This might involve getting your older tech repaired or fixing it yourself and although that may be a bit more effort, it’ll be a far more sustainable choice than buying something new.
In my opinion, buying refurbished would be the best solution, as you can get refurbished products which are unrecognizably refurbished and could pass as good as new. Refurbished goods also tend to be cheaper than constantly paying for repairs on your broken phone. You can get refurbished versions of all the latest iPhones, Samsungs and other androids, so you might as well save a few pennies whilst getting a phone of great quality, helping the chip shortage and helping the environment as a whole.
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