Chipageddon – Design during a global chip shortage - Banner

Chipageddon – Design during a global chip shortage

With an international shortage of supply, what does this mean for innovations in design?

Microchips are everywhere. From phones, to TVs, cars to watches – just about every product these days relies on computer processing semiconductors.
But with an international shortage of supply, what does this mean for innovations in design?

 

The cause

The current ‘Chip Crisis’ or ‘Chipageddon’, describes the current world-wide shortage of microchip semiconductor processors that could potentially last until 2023.

But how did it come about?

In 2019, localized storms and power-cuts effected a number of major chip manufacturing centres in America causing them to temporarily pause production, reducing supply.

But then COVID hit.

With hundreds-of-thousands more people across the world suddenly working from home; demand sharply rose – whilst production capacity decreased due to factories commandeered for PPE production.

Essentially this has meant that processor units are harder to get hold of, and subsequently are costing more.

For some items this means product shortages – such as with the PS5 and Xbox Series X, for others it means launch delays – such as the new Galaxy Note, and for others it means price rises.

The knock-on effect has been unimaginable.

It’s estimated that the supply issue has caused major production delays for as many as 169 different industries and has already cost industries such as the automotive sector as much as €90 billion. Companies such as Land Rover and Jaguar are forecasting as much as a 50% dip in sales for 2021 due to the knock on effects of the crisis. 

 

The solution

But despite the current global shortage – we’re not putting innovation and design on pause.

Quite the opposite.

Practically speaking, we have upped our supply of computer chips to allow for uninterrupted research, development and production.

But more than this, as one of the leading product design agencies in the UK, our experienced team of designers, engineers and programmers are well versed in redesigning products to solve problems. If certain components are no longer suitable, we re-think and re-design.

As a business, we are committed to continued progress, and during these unsettling times have opened up several new positions to join our award-winning team – including new roles in Design, Embedded Software Engineering and Production. Visit our careers page for more information.

 

If you’re concerned about the impact of the chip crisis on your product design, get in touch.  




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Toby Fairclough

Digital Marketing Manager