Sep 19 2022

5 Answers to Questions About the Chip Supply Shortage

As schools went remote in 2020, the demand for laptops and other consumer electronics skyrocketed. Here’s why.

When schools went remote in 2020, the demand for laptops and tablets skyrocketed. This depleted inventories, accelerated the need for computer chips and created sustained shortages. Read on to learn five reasons this situation persists.

Why Does the Chip Shortage Matter?

It’s led to a sharp scarcity of both consumer and business electronics at the same time as demand for new electronics has soared. In addition, it helped fuel July’s 8.5 percent U.S. inflation rate, the highest in decades.

Click the banner to access exclusive educational tech content when you register as an Insider.

What Caused the Chip Shortage?

The main factor has been COVID-19-related factory shutdowns and supply chain snags, the latter caused by the steep increase in demand for PCs for home use. Taiwan’s historic drought in 2020–21 led to a shortage of water needed to make chips, and the giant freighter that blocked the Suez Canal for more than 100 days in 2021 triggered one of many ongoing worldwide shipping delays.

How Can Schools Cope with the Shortage?

Plan to buy as quickly as possible when products become available. If your school district needs something immediately, consider purchasing a different brand or spending more for a product. If your district has a tighter budget, consider waiting for the desired product to come back in stock.

READ MORE ON EDTECH: Low supply and high demand drive delays.

When Will the Shortage End?

Most experts agree the shortage will continue into 2023. Demand remains sky-high, and plans are in motion for new Intel and Texas Instruments foundries in the U.S., which could ease reliance on Asian chipmakers. This will not be a quick fix, however, and no one can predict when the shortage will end.

Has the Chip Shortage Affected Cloud Migration?

Not as much as it has affected consumers. The business model of cloud providers is based on the sharing of chip-based resources.

KEEP READING: Is cloud storage safer than on-premises databases?


Learn from Your Peers

What can you glean about security from other IT pros? Check out new CDW research and insight from our experts.