Micro numbers of microchips spell problems for manufacturers

A COMBINATION of the pandemic, Brexit (for the UK) and a major fire in Japan have led to a massive worldwide shortage of microchips.

It may get better in the long term but in the short term the problem is getting worse which may result in the cost of computers and mobile phones shooting up.

This has been made worse by the increase in home workers, many of whom have upgraded their laptops and pcs so demand has risen faster than production.

5G needs fuel an increase in demand for new mobile phones and there has also been a steady increase in the sale of video games during lockdown

What’s more with so many car manufacturers relying on microchips to control the ever more advanced brains of their vehicles, the problem is slowing down production considerably.

Indeed Tata, the Indian owners of Jaguar Land Rover (JLR), now Britain’s largest car manufacturer have recently announced that because of the shortage of microchips that it will have to suspend production at two of its three UK factories.

This slow down would not only affect the company’s revenue but could see some form of financial loss for its nearly 6,000 workers if they are forced to work part time.

It’s not just the UK that is suffering as the majority of auto manufacturers in Europe and the USA have reported similar problems especially as the demand for new vehicles is beginning to increase.

According to the BBC, Vauxhall has decided that due to the problem it will install ‘old style’ analogue rather than digital speedometers into its new cars.