The global chip shortage is a much bigger problem than everyone realised. And it will go on for longer, too

“Out of stock”: the frustrating warning has made its way to an increasing number of phones and laptop manufacturers’ websites over the past year, often leading to long waiting lists for consumers wishing to get their hands on shiny new electronics. 

At the heart of the problem is a global shortage of semiconductors, which is not showing signs of coming to an end anytime soon. Worse still, it is likely to trickle down to the production of everyday products that have little in common, at first glance, with high-end technologies. Think children’s toys or microwaves. 

In January, global semiconductor industry sales reached $40 billion, an increase of 13.2% compared to the same time in 2020. But although chip manufacturers assiduously continue to produce components, the demand for electronic devices that use semiconductors is reaching new heights and has already far outpaced the global supply of chips. 

The COVID-19 pandemic has played a large part in bringing about this imbalance. As companies sent their staff back home to work remotely, PC and smartphone sales surged. At the same time, users turned to new, chip-filled forms of entertainment to pass the time during months of lockdown, ranging from gaming to cryptocurrency mining. 

“Plan ahead, don’t expect to be able to buy or order something and get it immediately, look for alternate suppliers and products, be prepared to take higher- or lower-spec products if the one you wanted is not available,”