Chip shortage continues

For some months now, the IT sector has been affected by an unprecedented shortage. Several materials and components are missing, in particular due to a lack of semiconductors. As a result, many companies are no longer able to produce certain components that are essential to the functioning of our daily connected lives.

Where does this crisis come from?

In 2020, the Covid 19 pandemic had a major impact on the IT industry: companies had to implement teleworking for their teams and buy hardware in large quantities. This jump in sales should have been compensated by an increase in production. Unfortunately, at the same time, the producing countries, particularly Taiwan, were hit hard by several waves of epidemics. Production has therefore been heavily impacted. Contamination figures are still rising and vaccination is slow. The areas where the main electronics production plants are located have been confined. Production has since been minimal, creating huge supply problems.  An entire industry is seizing up.

More recently, strict regulations on electricity consumption are slowing down the pace of Chinese factories. This is another constraint that is already reducing supply. Demand, on the other hand, continues to grow.

The industry body, the Semiconductor Industry Association (SIA), notes that semiconductor manufacturers are currently investing heavily to increase capacity with new plants in the US and Europe. However, the chip manufacturing process is so sophisticated and complex that it will take a few more years for chip supply to fully recover and stabilise.

Which products are affected?

A large number of our connected objects are affected: from smartphones to cars and connected light bulbs. All of them contain these highly coveted chips. It is this shortage of components that has led to entire fleets of unfinished new vehicles. An estimated 3.9 million cars will not be produced in 2021, explaining the long delays in the delivery of new vehicles.

When will the situation return to normal?

According to experts, the current situation could last until the beginning of 2023. We will therefore have to be patient.

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