“Chip” shortage for next two years

The Information & Technology and Tech industry are at a crunch point. This is not because of having new projects and not having new orders but just because of shortage of computing chips. Coronavirus pandemic has disrupted the supply chain system and order management as well. Sales of the top 15 chip manufacturers in the word fell down by 50%. People working from home have needed laptops, tablets and webcams to help them do their jobs, and chip factories did close during lockdowns. Toyota is struggling in production of cars, Volkswagen is producing a limited number of products and BMW can’t produce as many cars as the company wants. There is only one reason for the shortage of computer chips.

Intel predicts the chip supply bottlenecks won’t ease for next two years. Demand for computer chips has drastically surged because of digitalization which has been unbelievable. Digitalization created a huge demand for chip production. People are using electric cars and companies are using robots for automated production. The Use of chips is certainly needed in every sector. Millions of products like cars, washing machines, smartphones, and more rely on computer chips, also known as semiconductors. Malaysia is one of the world’s top destinations for assembly and testing of the devices that control smartphones, car engines and medical equipment. Covid-19 disrupts the supply chain system of manufacturing semiconductors in Malaysia and is expected to continue till next year.

Jaguar Land Rover (JLR) is stopping two main car production manufacturing companies temporarily due to shortage of computer chips. The other big manufacturer Ford was also hit by a global shortage of chips. Samsung, the world’s biggest computer-chip manufacturer, has warned of a serious imbalance in the semiconductor industry, as global shortages cause disruption. The US and China are seriously looking to increase their production. Automobile and Mobile manufacturing companies can’t always get the parts they need due to coronavirus pandemic outbreaks denting factory output.