New Chip Shortage Curbs Car and Computer Industry

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Henry Regrut, Staff Writer

 

 The biggest issue with the world right now is Covid 19 and the pandemic and its effect on people’s health. But Covid is also causing supply chain issues that are affecting manufacturing and the economy. The auto industry, a major global manufacturer, can’t sell new cars. 

When you went to any car dealership before Covid, there were a ton of the latest and greatest cars in the showroom on display. Now, after the worst of the pandemic is over and businesses have started coming back up, people have been starting to buy cars and computers again. But those on the market to shop are finding there are few computers and cars available to buy. 

The car shortage, for example, isn’t due to a lack of metal, aluminum or plastic; it is due to a chip that’s needed for the entire functioning of the car, from the electrical system to the motor. Dealers are reportedly paying 27% more for pre-owned vehicles than they did just one year ago. 

Also, that expense, of course, gets passed on to consumers. For example Kia, a car manufacturer, lost 13 percent on sales in November because of the shortage. Also, “Kia sold a total of 2,22,232 vehicles in November, down from 2,56,215 units a year ago. Domestic sales declined 8.9 percent on-year to 46,042 units last month from 50,523, while exports were down 14 per cent to 176,190 from 205,692 during the cited period.” The company said in a statement.

Another reason why the chip shortage started is because people are buying more pc’s and regular laptops than ever before. During the pandemic, because of Zoom meetings for school and work, people are buying more and more computers than ever before. More and more people are buying computers, especially people who play video games this year because of the new graphics cards that were released around November and December of last year. These graphics cards from AMD and Nvidia have been changing the world with gaming performance, but the big issue is no one can buy them because of this chip issue. If you want to buy graphics cards, you will have to spend double of what they had typically sold for.  For example, a brand new RTX 3080 card on Amazon sold for $800; it now sells for $2,000. 

Though this chip shortage has been getting better, industry experts predict the chip shortage issue won’t be back to normal until 2022 or even early 2023.This chip shortage during the pandemic has greatly impacted the world around cars and technology. For all of the people that are wanting to buy a graphics card or a car it will be a while, but this shortage will be done eventually.