Hardware

What Is Going On With The Global Computer Chip Shortage?

The world is experiencing a shortage of computer chips due to many challenges facing information technology today, and manufacturers cannot produce them fast enough. To develop a new computer device, whether hardware or software, one must be innovative and determined to cope with changing technology.
What Is Going On With The Global Computer Chip Shortage?

Computer chip of semiconductor material embedded with integrated circuitry. Fragments comprise the processing and memory units of recent digital computers. There are pretty few manufacturers of a computer chip. Computer Chip comes from a silicon wafer, first cut size and then etched with circuits and electronic devices. These electronic devices use complementary metal-oxide-semiconductor technology.

The pandemic has affected global economic growth. In this regard, the cost of manufacturing central processing units, integrated circuit boards, and glass for screens is increasing at a very high rate globally. Due to high demand, the supply for these products has become an extreme point of stress globally. Not only affecting the whole process of new vehicles production and modern gaming devices but has influenced everything from new phones to laptops to servers.


The massive growth in internet and cloud-based services made available by big companies have added capacity to their network and computer infrastructure. In this regard, issues of delayed items emerge simultaneously with the manufacturing world, which means that delay in one part of the system causes delays for the whole production system. But with the help of information technology and better planning ahead, companies can overcome these challenges in the best way.

Many companies operate with low stock levels to keep costs down, but currently, they have placed huge orders for the computer chip. Chip manufacturers are now facing high-demand problems. For instance, chip factories have limited capacity, and building new factories takes massive investment and is often a time-consuming process. Due to Covid 19, the cost of felling computer chips from Asia to Europe is tripled compared to recent years. With the rise in transportation cost of these chips, many companies delayed the acquisition of new devices. Only to realize they were running out of stock. Today there is pressure for more demand than supply, meaning that it might take more time than expected to receive new devices in place. Due to unavoidable circumstances, many tech companies shall bear the shortage of computer chips until wafer manufacturers communicate otherwise.

What To Do

Information technology has made our day-to-day work more manageable, reliable, and cost-effective. IT should be integrated with inventory and finance systems to enable the company to place orders for new equipment early enough to avoid delays. In this regard, management will note the time between placing an order and delays in receiving a new computer chip. Young entrepreneurs and tech companies should use IT to place early orders for new hardware and software devices. So far, Apple has been able to have its orders fulfilled. In this regard, it is gone better than expected for young entrepreneurs and professionals but not all for particular manufacture.

Planning For The Future

The bottom line is that prospective customers aren't likely to notice price rises or shortages of tech products. Covid 19 accelerated an already precarious situation for chipmakers. We are in the middle of a tech boom, inventory can't quite keep up, and it won't get sorted out this soon. It means that all sorts of prospective customers could continue to experience delays for months to come.

OIT worked with various departments to pass information about thus delays and develop a plan to extend the life of current technology until new equipment is received.
Below is an estimated timeline provided for a technology center
· Apple – 3 weeks
· Dell- 2 to 3 weeks
· Lenovo- 4 to 6 months
· Google- 3 weeks

All these companies have promised to update their customers on the situation. Information Technology can help avoid delays by providing all necessary information about the availability of products and manufacturers' new product updates orders before any such delays occur.

With Inventory Management System company can truck their inventory from the manufacturers, shipment, and device acquisition. IT aided system provides real-time feedback on the products. This enable company to plan and strategize resource usage. The future of IT depends on how it helps us work more efficiently, manage better, and plan our futures. The world is experiencing a shortage of computer chips due to many challenges facing information technology today, and manufacturers cannot produce them fast enough. To develop a new computer device, whether hardware or software, one must be innovative and determined to cope with changing technology.

Disclaimer: We may link to sites in which we receive compensation from qualifying purchases. We only promote products and services that we believe in.

Continue Reading

×