What fuels the world? Well, it used to be good ole sweet baby dinosaur remains, or as simpletons call it “Gasoline”, but in a recent rise of Electric Vehicles, gas is out and chips are in. Again, what fuels the world? Yep, computer chips.
In a world of abundance, there is a massive shortage that is plaguing virtually everyone. The shortage is in computer chips, some fucking nerds call them semi-conductors but I will spare you a blog chalk full of the word “semi-conductor”. Anyway, this shortage is in part due to the pandemic, which forced most houses, companies, and communities to turn to technology in order to keep business flowing and relationships intact. The chip shortage actually kind of began in the auto industry, while the transformation of EV’s takes place, auto makers now require completely different parts to continue making cars and trucks for the public. EV’s in fact, take a TON of different computer chips to help the car operate safely and efficiently. Look the last thing you want from an EV is for them to skimp out on chips and the EV starts to become sentient and then have a Thelma & Louise-iRobot mashup on your hands. But the long story short, is that because of the pandemic, the switch to Electric Vehicles, and a general transition to a more tech involved life, has led the world to use so many fucking computer chips that now companies like AMD, Nvidia, Intel, Taiwan Semi-Conductor, and any other chip making company are putting in overtime to meet the surplus of demand.
Automakers aren’t the only ones hurting, PC makers, game console producers, and any company that uses tech in their products has found the chip shortage to be a stinging blow to their production output, and in the end sales numbers. Sony might have released the PS5 this past year, but that PS5 had a similar experience that automakers are going through. Sony just could not find a good supply of computer chips to power their new systems. The massive demand and little supply are artificially inflating the price of chips and leading companies to hoard computer chips as a safety net, just like a crazy cat lady would buyout a local Petco of all their cat litter. As the Mandalorian always says “This is the way” and it seems like it in 2021. The shortage is impactful but will be short in nature, as chip companies, you know, want to continue to make fucking money, so operations at all companies in the chip manufacturing industry has been ramping up production like never before.
The great chip shortage is a tell-tale sign of what plenty of industries face, when rationality is thrown right out the fucking window by the public. You remember the great toilet paper shortage? Literally we had meme’s for days, similar scenario, but a different industry. The chip shortage is apparent, but surely cannot last long (knock on wood). Where there is money to make, people will flock.
Anyway, that’s my take on it. Until next time- GS
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