Christmas present hell as global chip shortage threatens empty tech shelves until 2022

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It comes as Sony slammed the brakes on orders for a ZV-E10 mirrorless vlogging camera amid the shortage of the vital component needed in many a tech gadget. The Japanese electronics giant posted the notice via its notice board earlier this month that shortage caused a delay in procurement of parts for its “digital imaging products”.

It said it “deeply apologises” for the delay.

And Sony is not the only electronics company suffering problems.

Canon has also announced that customers who ordered its new EOS R3 would have to wait up to half a year before they can receive their orders.

The ongoing chip crunch has been hurting production across a number of industries, from cars to consumer appliances, personal computers and smartphones.

In October, it was reported that smartphone sales dipped by six percent due to the shortage, which has been blamed on an ongoing supply chain issue brought about by the pandemic.

And we have already seen short supplies of Xbox Series X and PlayStation 5 games consoles.

Xbox head Phil Spencer said the chip shortage and supply chain constraints have meant the consoles were likely to remain in scarce ground well into 2022.

And Nintendo Switch sales forecast for the fiscal year were down by 1.5 million on November 4 because of the “the effects of the global semi-conductor shortage”.

Canalys principal analyst Ben Stanton said that while manufacturers are doing their best to keep up supply, the chip shortage is at a legitimate roadblock.

He said: “On the supply side, chip manufacturers are increasing prices to disincentivize over-ordering in an attempt to close the gap between demand and supply.

“But despite this, shortages will not ease until well into 2022.”

Intel warned that the shortage could stretch to 2023, warning of a continued restricted supply of laptops.

The company’s chief executive, Pat Gelsinger, explained that the disruption in the global supply chain has created a “very large gulf”, and urged the need to normalise relations with China, as many US companies do business with it.

He said that part of the reason for the shortage was due to “pretty poor relations between the US and China – and the whole industry being caught up in that conflict”.

Intel has 25 percent of its revenue tied up in China, which Mr Gelsinger says has “an insatiable thirst for technology that helps them digitise their economy”.

He added: “We need to keep doing business in China. If we don’t, they’re forced to build indigenous alternatives.”

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Investment bank JP Morgan warned that the shortage could be expected to drag on through 2022.

Gokul Hariharan, co-head of Asia-Pacific technology, media and telecom research at JPMorgan, told CNBC: “We are not expecting 2023 to be in supply shortage – so, that is probably the first thing that we can say.”

But he said that 2022 will be “a little bit more tricky”, with things hopefully improving by the second half of the year as more supplies come online.

Mr Hariharan added: “There is capacity coming online, not just from the foundry companies, but also from the [integrated device manufacturer] companies.

“All the US and European IDMs are also expanding their capacity — a lot of it is slated to come online from the middle of next year onwards.”

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