It’s no secret that the pandemic has affected nearly every industry. However, there is one major outcome of the pandemic that is causing great turmoil across the globe—the shortage of semiconductor microchips used to manufacture tech equipment, vehicles, along with key components in products spanning 169 U.S. industries.

We’ve been getting a lot of questions about the shortage and its impact, from customers asking how it will affect our business, so today we’re going to break it down for you!

What is Causing the Global Semiconductor Shortage

In short, a semiconductor chip can be viewed as the brain of any electronic item from a smartphone to a car. Everything we do today is so centered around technology that a good majority of industries rely on these tiny chips to power their products that we rely on in daily life.

In the beginning of the pandemic, automotive manufacturers started buying less of these chips because they expected a drop in demand, however demand ended up remaining steady. In that time, the demand surged for electronics, PCs, and other techy gadgets that powered most of us through the pandemic. The inception of 5G has also increased the demand for this product as well, which paired with the pandemic surge has made it even more difficult.

While you’d think manufacturing a small device barely larger than your fingernail would be simple, the manufacturing process can take months. So, although demand has increased drastically, production hasn’t. Global production and supply chain simply can’t keep up due to the highly-controlled environmental requirements in microchip factories—a new factory can cost billions of dollars to build—paired with international trade issues.

The summation of all these parts is what has caused a shortage impacting companies across the globe.

How the Global Semiconductor Shortage Has Impacted the Tech Industry

In the tech industry, we’re seeing an increase in pricing on consumer electronics like gaming consoles and smartphones. Tech manufacturers are trying to navigate the world between having enough supply and what to charge for the reduced supply. Only time will tell when the shortage will wane, until then, companies are trying to prepare for long-term impact.

Trust to Keep Stock of All the Tech You Need

Regardless of this industry and worldwide dilemma, is fully stocked!

Our team has worked tirelessly throughout the pandemic to procure plenty of laptops, PCs, networking equipment, and all the tech you may need in your daily life. Our partnerships have remained strong, and we’ve generated new relationships and avenues to ensure we can provide what you need at a reasonable cost. We keep our stock in our own warehouse, ready to be shipped with just the click of a button for your home or business. During this shortage, we will continue to be a distributor that you can count on to fulfill the equipment needs your business has for operations.

Browse our stock online, or chat with one of our team members to see how we can help you during this tough time for the tech industry!