As we discussed last weekThe global supply shortage that affects all types of products, from consoles to phones to cars, is due to a lack of semiconductors. More specifically, however, some of the biggest culprits is a shortage small parts that costs about $ 1.
Like this Bloomberg report points out, a worldwide shortage of display drivers and the equally small and previously anonymous power management chip are two of the most specific parts of the supply chain that perpetuate the global production of virtually anything with a computer.
The same report also provides quite an interesting update on why we have this shortage, from a drop in production orders (companies thought lockdowns would create less demand for computer-related products, no more) to the fact that some of these components are made using outdated manufacturing methods to an explosion in variety and number devices that needed chips that were previously unnecessary.
While we would expect this massive increase in demand would mean a rush in new factories and improved manufacturing capabilities, the real downer here for anyone looking for a PS5 or with a new car on a dock somewhere is that the companies that responsible for making components like the display driver aren’t interested in making any changes anytime soon as “existing lines are completely written off and refined for near-perfect returns, meaning basic display drivers can be made for less than a dollar and more advanced versions for not much more.”