Following a recent report by an analytics firm GlobalData, it seems that the problem of chip shortages across the continent will not be solved anytime soon.
2020 was the first year that a noticeable increase in demand for semiconductor chips exceeded supply, and it led to a drop in the component that helps create computers, cars, DJ gear, and more. , threatening nearly 200 industries.
Several factors were at play in this shortage; while some pin it The trade war between China and the United States, the most common cause of COVID was also highlighted, and in the UK this could more likely be attributed to Brexit.
Shortages worsened throughout 2021, intensifying towards the end of the year when It has been reported that a factory in Japan that produces the majority of chips for Pioneer and Denon equipment had burned down.
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Steve Lee, Managing Director of Professional synthetic audio Recount Mixmag last year that this factory is one of the “only factories in the world to manufacture it”.
GlobalDatarecent report, Tech, Media & Telecom (TMT) Predictions 2022, predicts that shortages will continue through 2022, but are expected to accelerate towards the second half.
Talk to ZDNet, GlobalDataThematic Research analyst Daniel Clarke predicted: “For the technology sector, smartphones and game consoles will continue to be affected.
“Consumers will be affected by rising prices or a general lack of widespread availability. This is because tech companies will decide to either absorb the cost internally or pass it on to consumers,” he said.
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Clarke also pinned ongoing shortages on “the emergence of a new variant,” which he said will reduce pressure on tech sales as many begin working from home. It is assumed that this will also disrupt production and distribution.
This could mean that a large majority of DJ equipment – already in high demand with skyrocketing prices – will continue this way until mid-2022.
According to another report by Deloitte, consumers could be waiting between 10 and 20 weeks for chips by the end of the year, a much bleaker prediction that could put the industry on hold.
So while it might not seem like a great time to buy a new set of decks, we might see the light at the end of the tunnel in the shape of COVID by summer, if not for other contributing factors.
Gemma Ross is Mixmag’s digital intern, follow her on Twitter