Through the pandemic we’ve been experiencing a worldwide chip and graphics cards shortage. But analysis suggests this could actually lead to a massive glut in 2023.
The pandemic has caused huge changes in the way we work and study. Kids have been attending school and university digitally. Far more people are working from home, and this trend is likely to be permanent. This has meant many of us have bought new tech in the last 18 months. Additionally – more of us are relying on entertainment that we can rely on from home (like gaming). This change in behaviour is likely to push up prices for these components as demand massively outstrips supply.
The huge surge in demand for devices has led to shortages of semiconductors. Supply chains have also been disrupted, as workforces have had to self-isolate and borders have closed due to COVID-19. At the moment, you’ll be in for a serious wait if you’re attempting to build a new gaming computer – and even for some mobiles and laptops. The chip shortage also helps to explain why it’s been so hard to get a PS5.
An uncertain future
Some have blamed part of this shortage on crypto-miners – who are snapping up hardware in order to mine for crypto currencies like Bitcoin and Ethereum. It’s another real world issue caused by crypto – heralded by some as a revolutionary new finance system. The University of Cambridge estimates that Bitcoin alone has a bigger carbon footprint than the whole country of Argentina.
Tech companies have scrambled to respond to the surge in demand. Nvidia and AMD have attempted to secure new supply chains so they can up production and Intel have joined the market.
However, as reported in Game Rant, new analysis suggests this change of gear might actually lead to an overproduction. As companies pile into the production of semiconductors to meet the new demand and to exploit high prices, within a few years we could be seeing way more GPUs and next-gen consoles on the market than needed. This could lead to prices plummeting and businesses going under.
The future for tech production looks unstable and uncertain.
SHOP WITH GAMEBYTE!
Don’t forget you can find great games and more on the GameByte Shop! Our store is stocked up with the latest games, merch and accessories. We might even have a new-gen console or two! Sign up to our newsletter to be notified of our console drops, deals and more. Please note the GameByte Shop is available for UK customers only.
Featured Image Credit: Laura Ockell via Unsplash