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A Shortage of Chips?

9/2/2021

 
When I set up this site I said that I would occasionally recommend other websites and articles that I feel are worth visiting. The article below is reproduced by kind permission of Julie at The Helpful Book Company. Julie writes their weekly Tech Tips newsletter (yes, surprisingly, there are other Tech Tips sites around as well as mine. However, Julie's is far more professional than mine could hope to be.) This week's article by Julie is about something very topical and important which potentially affects us all. The very last sentence says it all.
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Today, I want to talk a bit about chips.  Not the tasty fried-potato foodstuff (mmm… chips), but the rather more techy silicon variety – microchips.
Now, you probably already realise that microchips are everywhere these days – not just in PCs, tablet and phones, but in TVs, washing machines, your central heating system, your car (unless you’ve got a proper classic)... even your dog.  But you might not know just how many there are.  I was reading an article the other day, and apparently the average new car uses over 100 separate microchips.  For a car!
And I’m afraid that, when it comes to making all these chips, there’s some "trouble at t’mill".
With the whole world in various degrees of lockdown over the last year, there’s been a massive surge in the number of people wanting new kit – laptops so they can work from home, tablets and other gadgets for video calling, games consoles to keep them occupied… On top of that, countries are rolling out the 5G mobile network (which needs yet more chips) – and the chip makers just can’t keep up!
It’s led to a serious shortage – particularly for car manufacturers (who need a slightly different type of chip from most other tech) but for tablet and phone makers, too.  Some car companies have already had to slow down or stop production entirely, because they just don’t have the chips to finish the job – according to the BBC, it’s been dubbed “chipageddon” by someone in the car industry!  Colourful.
But how does it affect other tech, and you specifically?
Well – there are two options when there’s a big shortage like this.  Either manufacturers start making more chips, or you end up with less choice and higher prices.  Sadly, in this case, it looks like it’s going to be the second.  Setting up a new factory to make silicon chips isn’t quick or easy – it’s a very fiddly, technical process – so it’s not really an option here.
It’s unlikely to affect the really big companies like Apple, because they’ve got very deep pockets and a lot of clout.  But the smaller tech firms might find themselves struggling for parts this year.
So my advice would be, if you’re thinking of investing in a new bit of kit, either do it now before the price goes up or wait a year or so for everything to settle down.

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    Alan Pollard
    Retired computer professional now in my 70s but still passionate about computers, the internet and information technology in general.
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