Fort Lauderdale, Florida, 07/08/2021: A local IT expert is recommending business owners and managers plan now what new devices they’ll want later this year – because of a global chip shortage.
Cesar Avila, of AVLA.net, says few people here are aware that there are just not enough chips being manufactured for all the devices that need them.
“These days chips go into almost everything that’s produced,” he said.
“Even refrigerators need chips. Demand is racing. And a number of unique circumstances have come together to severely restrict the number of chips available.”
First was the pandemic. Millions of people bought new devices while stuck at home. Experts think people will rush to upgrade to new 5G phones this year, increasing demand again.
Recently, some large chip manufacturers had to suspend production – one in Austin, Texas due to power outages, and one in Japan after a fire.
Meantime as political tensions have grown between the US and China over the last few months, Chinese tech companies have been stockpiling chips and chip-making equipment.
Cesar Avila added: “The thing is, it’s so difficult and expensive to manufacture chips that you can’t just open new chip-making factories to meet demand.
“All of this means that there just aren’t enough chips available. And that’s going to be a problem right through to next year.”
Cesar’s business AVLA.net was formed in 2007. It now looks after hundreds of businesses in the South Florida area.
