Ask Asa: What you should know about the computer chip shortage
If it has a battery or a plug, it probably has a computer chip. So when these chips — or small electronic circuits — are in short supply, it's a big problem. Consumer reporter Asa Aarons Smith explains why.
If it has a battery or a plug, it probably has a computer chip. So when these chips — or small electronic circuits — are in short supply, it's a big problem. Consumer reporter Asa Aarons Smith explains why.
If it has a battery or a plug, it probably has a computer chip. So when these chips — or small electronic circuits — are in short supply, it's a big problem. Consumer reporter Asa Aarons Smith explains why.
Computer chips are an essential component of most electronic devices. They're used to make practically everything run faster and better. What do I mean by practically everything? Take a look.
Carmakers are feeling the crunch. The chip shortage has left car dealerships bare, forced up prices on new, used, and rental vehicles and cost global automakers some $210 billion in lost production.
But that's just the beginning. Have you heard of the nightmare before Christmas? This year, the phrase accurately describes the chip shortage, which has stalled the manufacturing of thousands of toys and games.
It's the same story with other popular holiday gifts like home appliances, health and beauty devices, cell phones ... Practically everything associated with modern life.
Like so many things these days, part of the shortage is pandemic-related. Ian Sherr, an editor-at-large with CNET, has tracked the chip situation.
"It's been a problem building for years. But it got worse during the pandemic because we're suddenly all at home and we decide, 'Oh, I want to have a nicer tv.' or 'I need a new computer to be able to work from home' or whatever else."
Over the past few years, Sherr says demand for chips has gone through the roof. Demand is outpacing supply, and that's causing shortages of all kinds of products. Good luck filling that Christmas list.
"Maybe you'll have to go to eBay for that one thing you want to have under the tree or next to the menorah because it's not available in stores. You're going to have to pay more for it, and that's frustrating."
To find what you want, you may have to go out of your comfort zone — from traditional stores to other purchase options. You'll have to spend time searching online gift guides, identifying potential alternate gifts, and systematically checking store shelves.
But you don't have to let anxiety replace your holiday joy. Shorten your shopping.
"When it comes to buying stuff this year, if you're hunting down products, especially hard-to-get products, do not wait. You want to make sure you have your list ready, that you've checked it twice and that you've started the hunt."
As supply eventually catches up with demand, researchers expect the chip situation to resolve. But it will likely take at least another year.
For now, be flexible. And be sensible. Take care of the electronics you have to make those products last longer.
