Chip shortage threatens the future of world trade

The arrival of the pandemic suddenly and unexpectedly triggered the consumption of technological products. Computers for teleworking, mobile phones… The increasing demand for these products has led to a global chip shortage that has shut down hundreds of factories and could last until 2022.

The main export countries of this industry, South Korea Y Taiwan – up to 83% of the total comes from there – they are not enough to meet demand, and the shortage of chips is affecting other big industries such as the automotive industry. With that in mind, companies and governments are looking for ways to make their own chips before their market converts the product into new gold or oil.

As some ING experts explain in economistthe shortage of chips has no easy solution in the short term since It is an industry that requires large investments and qualified personnel. In addition, demand has increased due to the pandemic, but also because a larger number of products currently contain a chip.

In this sense, the implementation of 5G networks and the massive acquisition of technological products for mining Bitcoin are some of the explanations for the lack of chips. In the latter case, the high environmental impact of this cryptocurrency originating from these devices has led to it Elon Musk half paralyzing its big project of payments with decentralized currencies.

Chip shortage triggers used car sales

Although not immediately obvious, the automotive industry is one of the hardest hit by the global chip shortage. In Spain the workers are from Renault in Valladolid Y Palencia They are already feeling the effects of the problem first hand as they have suffered an ERTE due to the chip crisis which will last until September.

In general, the sector continues to accumulate losses, with large delays in the manufacture of vehicles. All of this sets up the perfect storm for used car sales, which have skyrocketed in Spain thanks to the global chip shortage.

Corresponding Vozpopuli explained, new car sales fell 36% in the first five months of the year due to chip shortages. However, used cars They reduced their selling time by 30%up to 25 days, and their prices have increased by 15% in recent months due to this increased demand.

This situation creates a business opportunity for some entrepreneurs who make a living from buying and selling used vehicles, buying old cars, repairing possible breakdowns and later selling them more expensively. In addition to the shortage of chips, the increased demand for used vehicles due to the fear of contagion in public transport means that this sector contains the perfect ingredients to start a business in the short term.

Chips, cars, crisis, management, second hand, technology