As we talked about last week, the global supply shortage affecting all kinds of products, from consoles to phones to cars, is down to a lack of semiconductors. More specifically, though, some of the biggest culprits is a shortage tiny parts that costs around $1.
As this Bloomberg report points out, a global shortage of display drivers and the similarly tiny and previously anonymous power management chip are two of the most specific parts in the supply chain that are holding up global production of pretty much everything that has a computer in it.
The same report also gives a pretty interesting update on just why we’re having this shortage, from a snap-back in production orders (companies thought lockdowns would create less demand for computer-related products, not more) to the fact some of these components are being made using outdated production methods to an explosion in the variety and volume of devices needing chips that previously didn’t.
While we’d expect this massive increase in demand would mean a rush of new factories and improved production capabilities, the real downer here for anyone looking for a PS5 or with a new car stuck on a dock somewhere is that the companies responsible for making components like the display driver aren’t interested in changing anything any time soon, since “existing lines are fully depreciated and fine-tuned for almost perfect yields, meaning basic display drivers can be made for less than a dollar and more advanced versions for not much more.”
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