What Does the Global Chip Shortage Mean for You?

One of the ripple effects of the pandemic is the impact on supply chains – especially for semiconductors (or chips). In 2021, almost all major manufacturers across a broad range of industries like Ford and Samsung have said they are slowing production due to the global chip shortage.

Experts predict that things won’t go back to normal until 2023. Until then, here’s what to expect:

• Products that contain chips will get 10-15% pricier. This doesn’t only include PCs but everything from cars and gaming consoles to fitness wearable and smart litter boxes.
• Some products may become unavailable, hard to find or have longer waiting times. The hardware vendors that AllSafe IT works with regularly have advised lead times up to 90s days for many of their products.
• If you are anticipating any hardware purchases in 2021-2022, please keep these factors in mind and plan ahead. We strongly recommend that you work with your IT provider to forecast your technology needs for the next 6 months.
• Plan ahead for the 2021 holiday shopping season - buy as early as possible and don’t wait for price drops.

In October, Apple announced that they were cutting production of the new iPhone 13 by as many as 10 million units. Analysts fear this is a sign that supply chains conditions are getting worse, as even “the most powerful company” is being impacted.

March 2022 Update: While we initially predicted things to go back to normal around 2023, Russia’s invasion of Ukraine will further restrict chip production. Ukraine supplies 50-70% of the world’s neon gas, a raw material used in chipmaking. The conflict will lead to shortages, which in turn impacts the supply chain. Expect the shortage (and the resulting higher costs) to continue for the foreseeable future.