What does this mean for our economy?
There is a global computer chip shortage that our economy is facing at the moment. With the ongoing COVID-19 pandemic and continuing high demand for products requiring microchips to function, it looks like we’re still quite a way off from ending the shortage. The cause of the global chip crisis is a combination of different events with the snowball effect of the COVID-19 pandemic being the primary reason. At the outset of the pandemic, mobile devices and automobile manufacturers all over the world anticipated a fall in demand and so, companies decided to order fewer semiconductor chips to cut their inventory expenses when production shutdown. Good thing, we here at Two Way Radio Gear have stocked up and now have inventory on devices you need!
What is a Semiconductor Chip?
A semiconductor chip is a silicon circuit installed in almost all electronic devices, including automobiles, laptops, gaming consoles, refrigerators, and even washing machines. With the rapid advancement of automobile technology, new features like calling, navigation and others are being added to cars. All these have increased the demand for semiconductor chips.
Reason for a Chip Shortage!
During the pandemic-led lockdown, people started upgrading their computers, laptops, phones, and many other electronic devices. PC sales rose by 13 percent in the US as per The Verge and according to the Business Line, India's laptop and tablet shipments grew by 119 percent and 52 percent. During that period, Sony launched its brand-new console PlayStation 5, which saw a huge reception and received millions of orders. Likewise, there was an increase in the demand for graphics cards, being used in gaming, graphics production, and crypto mining.
The effect’s the Chip Shortage has on Mobile Devices and in the Two-radio industries?
As large automobile manufacturers stockpile critical components, we followed the same method here at TWRG leaving us with inventory on products that now have been affected by the global chip shortage, with the “Best Prices” on the market. This year’s global chip component shortage has caused delays and major negative impacts on small businesses throughout the US, in the automobile and mobile device industry. The main effects this has targeted in the two-way radio business are the batteries and chargers. As the shortage continues to progress many Two-way radio manufactures are reporting a shortfall in the availability of both radios and batteries. The shortage has affected all parts including IC’s, SMD, parts, and power supplies. Undoubtedly the pandemic has led to this shortage. As more and more people began to work from home and students take classes online, it has created an upgrading demand for computers, laptops, video games, phones, anything electronic.
A combination of exploding demand and limited supply has contributed to the shortage of chips, which Gartner has forecasted will last well into 2022, and analysts reckon that bottlenecks in the supply of components will eventually restrict growth in some markets.
To be sure, chips and the goods that rely on them will be in short supply for the foreseeable future. Overall, we are prepared, we take our clients, products, and business very seriously, not only have we stocked up on inventory we also made sure our price points remain competitive. Request a quote now for the best prices in the nation. Helping our customers with their two-way needs since 1998.