War and Recession Could Drag Out Global Chip Shortage
The global tip shortage could continue as the war between Russia and Ukraine continues and consumers delay spending, according to one analyst.Talk to CNBC In a recent report). War, coupled with a recession in consumer spending, can increase the cost of high-tech products such as phones, computers and other devices.
When it comes to war, it’s a supply chain issue. Both Ukraine and Russia are home to the raw materials, gas and resources needed to manufacture semiconductor chips. Exporting these important resources remains difficult as the war continues. Ukraine and Russia are the largest exporters of krypton gas, an important resource used in the production of semiconductor chips.
Another gas, neon, is just as important, with more than half of the world’s neon supply being produced by Ukrainian companies. These two important gases can be very difficult to obtain for all semiconductor fabs around the world.
A serious shortage of krypton and neon will affect the price and supply of all devices that use semiconductors (phones, tablets, computers, vehicle ECMs, and others with computer chips).
Another problem is rising inflation, especially declining personal consumption of computer products. The enterprise sector does not appear to be affected by this issue so far, but consumer space is already showing signs of recession.
In addition to this Bloomberg Report Asian high-tech companies are beginning to slow spending and employment as marginal pressures increase due to rising salary costs and market skill gaps. Apple already plans to delay hiring just for these reasons.
The combination of these three factors can significantly increase the price of computer products in the coming months. But this depends on how much the inflation problem gets worse and whether the war in Ukraine lasts long enough to put an even heavier burden on the supply of critical gas.
The price is surprisingly low, but I’m not saying you should go out and buy a GPU right now.But that may not be the case bad In case prices skyrocket later this year.