By: Alisha Bhogal
Have you begun to notice the sudden increase in computer prices? Do you have to pay more for repairs, or are you facing a sudden backorder for newer electronics? Many of you are already familiar with the notorious lack in PlayStation 5’s, well there is a reason for it, and it’s not because SONY wants to see you suffer. The culprit behind the increased price fluctuations arose from the shortage of microchips. Microchips consist of a series of tiny integrated circuits embedded in silicon. Our technology cannot function without them. For instance, phones, televisions, and GPS tracking devices are just a few applications of microchip usage.
From the beginning of the pandemic, many companies have had to shut down manufacturing plants, lay off workers, and overall adjust to the sudden increases in raw material prices and covid-19 protocol. Besides the cost of technology and microchips, the pandemic has affected many parts of our lives.
During the pandemic, we have become more reliant on technology. Many individuals are working and spending more time at home, increasing the demand for newer technology and, thus, microchips. With the increased demand and limited supply, microchip manufacturers have had to increase their prices to meet their profit margins and supply to those willing to pay more than the average buyer.
Before the pandemic, microchip manufacturers fluctuated in their level of units supplied as the microchip creation process is known to be “very complex.” However, they could recover from such losses until the pandemic struck.
Michael Dell believes that “the shortage will probably continue for the next few years.” It is probable to say that the electronic process will reach an equilibrium in the coming years. However, it appears that many of us will need to reevaluate how much we are willing to spend on new technology.
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