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What Does the Fall in Supply of Semi-Conductor Mean for Consumers?

The global semiconductor shortage is creating a lot of problems in the tech world. The prices are shooting up every day. Here is all you need to know.

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Boudhaditya Sanyal
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Semiconductor prices have been at an all-time high. This is because the supply of semiconductors has gone down drastically. There are multiple reasons behind this downward graph.

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Reasons

There are multiple reasons behind the downfall, but there are two major reasons. First, the graph clearly shows the manufacturing go down in March 2020. This was the time when Covid-19 was rising and was declared as a global pandemic. This made industries and manufacturing units to shut down for months. This gave rise to the shortage.

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Another major reason behind the shortage was the increase in demand. The pandemic had made everyone stick to their homes and work from there. Everyone was in search of laptops, mobile phones, monitors, PCs, etc. The market was facing a supply block and the rise in demand did not really help. This made the supply go even further and hit an all-time low. This was considered to be the Global Chip Shortage.

What Does This Mean for Consumers?

There are multiple implications to the global shortage. The first thing that is getting affected is the price. The price of electronic appliances has seen a prominent rise. Not a long time ago, the global market was experiencing inflation in GPU prices. This made a lot of people question their choices about buying and investing in a gaming PC. GPUs were being sold for double their initial market price.

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The electronics market suffered scarcity of supply too. The production of mobile phones and computing processors slowed down. Less supply in the market directly translated to higher prices. This resulted in decreasing demand among consumers. Consumers also started reconsidering their dependency on electronic gadgets.

The newer tech that is coming is also facing the results of this shortage. Laptops, mobile phones and computer hardware are highly priced in the market.

The best way to cope with this while buying the essential tech that one needs is to invest in pre-owned gadgets. Pre-owned gadgets always lose price value and one can get these gadgets for very less price. It is also important to prioritize your purchases to avoid paying more now because the semiconductor shortage is here to stay.

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