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The Microchip Shortage Will Continue
The microchip shortage is going to continue until at least some time in 2023, according to experts.
One major supplier of less advanced microchips has stated that their entire projected output until 2023 has already been purchased. These are chips used in such consumer goods as low end watches, calculators, internet-enabled devices such as refrigerators and many of those placed in vehicles. Modern vehicles have as many as 100 chips per vehicle due to all the sensors in those vehicles. Webcams and microphones contain such chips. Even my food dehydrator has at least one microchip because it has a simple touch screen control. Yes, touch screens of any kind require a microchip.
The chip supplier did not state who their buyers are, for very good reason. The buyers could be in any country for any purpose. Chances are there was a form of auction involved, so it’s not likely most of them went to manufacturers of inexpensive consumer goods. Most likely would be high end consumer items and military equipment manufacturers.
No matter who the purchasers are, this leaves many manufacturers out in the cold for the rest of 2021, all of 2022 and part of 2023. Which means this will have a detrimental effect on retail sales and manufacturing. It will…
