01.29.2022 Written by Iman Khan

​

Who would have thought that something as small as a microchip could have such a great impact on society? As a result of the pandemic, in 2022, there is expected to be a shortage of semiconductor microchips which will leave consumers and manufacturers without enough technology.

 

Microchips are used in the majority of technology, including cars, phones, computers, and even home appliances. The scarcity of these items affects us tremendously. Nissan stated “we’ve just never ever seen anything of this magnitude impact us before.” Nissan also expressed that they will be making significantly less cars this year, which correlates to an expected decrease in technology production. Furthermore, manufacturers are struggling to make a profuse amount of microchips, resulting in less exposure to technology. 

 

The causes of this shortage include geopolitics and the high demand for technology, along with Covid-19. One effect of this shortage includes making the semiconductors more expensive so that there is less demand for it. Regardless of current inventory of microchips, manufacturing is delayed. Samsung and Apple have expressed that there will be delayed production of phones/computers created and sold this year. It’s also said that there will be less production of X-boxes, Playstation, iPads, etc.

 

All in all, the shortage of microchips will affect us significantly this year. Consumer demand for technology is going to increase due to a supply shortage. The solution is that the demand for microchips either lowers or Covid settles down, helping manufacturers get back on track.

​

Citations: “New Car Shortage Expected Well into 2022 | CBC News.” CBCnews, CBC/Radio Canada, 25 Oct. 2021, https://www.cbc.ca/news/canada/prince-edward-island/pei-supply-chain-pandemic-delays-manufacturing-1.6224596.