CPU Shortage


Has anyone noticed how all the cool tech seems to be hyper expensive right now? Well it turns out there is a very simple explanation, but the solution may be a little more complicated than one might think. 


Pre-pandemic, companies and factories were running at full capacity and producing at a reliable rate. However, once the pandemic hit, everyone went home. This means that there was no one to man the stations in the factories. No producers means no produce. This is the same reason that the CPU’s are out of stock. With nobody to man the machines, the factories have had minimal to no production.


But how does this affect the world of technology? If it’s a CPU shortage, then only people looking to upgrade or build their own PC’s should be affected, right? WRONG! Everything that utilizes technology of some sort also requires a CPU. it’s the “central processing unit” of the computer or any other piece of technology. Without the CPU, how will the computer run?


This shortage of CPUs can be used to explain shortages of other products as well. One of the leading factors of the PS5 shortage can be accredited to the CPU shortage. Same with the Xbox and PC’s, but it’s not limited to work and entertainment workstations. It’s also cars, microwaves, phones, and a whole host of other devices and machinery.


Until CPU production resumes to normal rates, expect the shortages to last a while. According to the research firm Gartner, the shortages should be expected to last until 2022. Similarly, Sony announced that PS5 shortages should be expected to last until 2022. There are also non Covid related shortages such as weather issues, employment rates, and on-site accidents. With all the demand, although companies seem to be thriving, they’re starting to fail to keep up with the recent demand.


Most companies that require the production of CPU’s have outsourced their business to either China, South Korea, Taiwan, and Japan. Having all your production regions in one place can have it’s limitations. Geopolitical tensions, changes in supply and demand, weather related incidents, and other factory shutdowns. 


Here is another thing to think about. If nobody can get their hands on technology, people will lose interest. If there is no interest, then there is no demand. Without demand, there is no need for supply. Catch my drift? With this realization, countries have started pledging their own production units outside of the usual producers. The U.S. military for instance, can’t produce the same amount of units that they normally do, causing them to take matters and production into their own hands. 


It’s not like everyone can make a CPU though. Building a CPU requires a state of the art facility that can actually house the machinery required to make the CPU. Making even a single CPU during normal production rates can take up to two whole weeks, but now with the slowed down production, making a CPU can take anywhere from 4 weeks to two months!


Fret not gamers, for there may be a light at the end of this dark CPU-less tunnel. With new production factories opening up across the globe and different companies taking up arms and making their own CPU’s, we may have some luck in the near future.