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A slowdown in the manufacture of computer chips has caused a shortage affecting companies across the globe. His company sells self-pleasure devices, some of which are deed to be small and discrete enough to wear around the neck like jewelry and require precise electronics de. Topolovac stocked up on critical chips and components that his products are built around months ago, anticipating a shortage that is now a reality. Other Bay Area companies are now finding themselves scrambling for the tiny parts that run everything from medical devices to precision aerospace clocks and beyond.

A slowdown in semiconductor and other electrical components manufacturing rolls through the global supply chain and continues to barrel into a range of carefully deed products that depend on the tiny bit of plastic and metal, without regard for industry. The stop start economic cycles foisted on the global supply chain by the pandemic are partly to blame and the squeeze on computer chips and electrical parts is being felt keenly by automakers that have been forced to idle some plants because of the supply bottleneck. Even tech giants like Apple have been forced to delay production as demand continues to outstrips supply.

But computer chips companies find themselves scrambling for items we use everyday from the kitchen to the bedroom and beyond. Some small and mid sized Bay Area companies are worried the shortages could kneecap the economic comeback after a year of massive disruption brought on by the coronavirus. Crave CEO Topolovac said his company started stocking up on parts like microcontrollers — essentially tiny computers — late last year and into in anticipation of a shortage. Fairly common and less complex parts like electronic resistors can be sourced from different suppliers, but parts like microcontrollers can wreak havoc on a product if they are in short supply.

Last year, many large electronics factories in Asia and elsewhere that the global electronics industry relied on shut down completely because of the rapidly spreading virus, throwing global chains reliant on just-in-time delivery into chaos. Now with vaccines being rolled out, many factories have reopened, albeit with partial capacity. Why that is the case is largely because of the whiplash nature of supply and demand for the tiny, highly complex parts, some of which can only be made in a few locations on earth, according to Professor Christopher Tang, who studies global supply chain management at UCLA.

With the onset of the pandemic last year, demand plummeted for products like cars and the chips required to run their onboard computers. Demand shifted instead to devices to help the world work from home like tablets, appliances and smart devices, Tang said.

Now with vaccines getting out and a demand returning for cars and other items that disappeared last year, manufacturers mostly cannot fill the rapid changeover in the market. Companies like Apple, which has been forced to delay the delivery of its iPhone 12 because of the chip squeeze, can use their purchasing power to essentially cut the line, Tang said.

Tang said the current shortage should be smoothed out by the end of the year, and any lingering effects will be gone within two years. Market intelligence firm IHS Markit has also said the semiconductor market will remain tight into During a recent trip to electronics factories in Asia, Walkup said most were operating with a third of the staff because of coronavirus restrictions. : chase. Most Popular. Top of the News. Lake Tahoe falls to alarmingly low level — environmental impacts could You have three weeks to fix that.

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