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Global Chip Shortage Slashed Shipments By A Third

Snapdragon chip render
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Thanks to this global chip shortage, shipments have been cut by a third based on a new report. This means that this suffocating chip shortage is still having an effect on the market as several chip manufacturers are struggling to meet demand.

This is why so many devices just can’t be bought. Devices like the PS5 and Xbox Series S/X are either perpetually on the “sold out” list or heavily scalped. This also goes for devices like the Pixel 6 Pro and the latest Galaxy S devices. So fat, it doesn’t seem that the chip shortage is getting any better, and this latest report just confirmed that.

Chip shipments have been slashed by a third thanks to the global shortage

The aforementioned report came from the China Academy of Information and Communications (CAICT) via Tech Radar. According to the report, as of February 2022, chip shipments are down about 31.8% year-over-year. Last month, there were about 14.5 million chips shipped, which is down from the 21.3 million shipped in February 2021.

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This points to an overall trend that’s been going on since the start of the Covid-19 pandemic. Back in February of 2019, according to the same source, global chip shipments weighed in at about 32.4 million units. That’s a drop of about 55.2% between 2019 and 2022. Needless to say, that’s not good at all.

The chip shortage is a major issue

Right now, we can tie a lot of issues to this chip shortage. Google had a disastrous launch for its Pixel 6 Pro. That phone was in higher demand than the Pixel 6, thus, the torrent of orders really put a strain on the supply. Also, Samsung had to delay the launch of its Galaxy S22 phones for fear of not meeting demand.

The company is also rumored to delay the launch of its new foldable phones later on this year. Doing so will probably put it closer to the launch of Pixel Notepad.

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Companies like Intel and NVIDIA are also feeling the burn from this shortage. The is investing some major coins to build more facilities to produce more chips and help offset this chip shortage. It’s planning on spending over $88 billion to build new locations in Europe.

The sad thing about this situation is the fact that supply is plummeting, but demand is rising. More people are buying phones and tablets nowadays, and that’s putting more of a strain on the supply chain. We’re still in the deepest part of this shortest, but hopefully, things will change.