PS5, Chevy Both Hit by Chip Shortage—Why is This Happening?

Electronic devices and gadgets are a massive demand in the world, particularly when the pandemic started as everyone was required to transition to a full digital setup at home to connect in school and work. However, this meant that the demand for gadgets rose and so does its components, which did not expect to be hit like the PlayStation 5 and now, the car industry.

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The Qualcomm Snapdragon 835 processor is displayed during a Qualcomm press event for CES 2017 at the Mandalay Bay Convention Center on January 3, 2017 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 5-8 and is expected to feature 3,800 exhibitors showing off their latest products and services to more than 165,000 attendees. Photo by David Becker/Getty Images

Ever since its release in November 2020, Sony and the PlayStation 5 have faced the massive issue of PS5 stock shortage and limited availability to be released on public but has not relayed the reason behind it. However, as the months progressed, it was discovered that Sony has trouble in supplying the different components that make the console.

Sony has been plagued by providing the world with stocks of the PlayStation 5 which still has massive shortages and demand across the world, despite delaying the release in several regions including the UK and Africa. The components that were lacking are reportedly the processor chips that would control the entire console, which is an eight-core AMD Zen 2.

PS5 Chip Shortage is Shared by the Car Industry

According to CNBC's report, the PlayStation 5's chip shortage has been a problem for months, which directly relates to the reason why it still does not have enough stocks to meet the demand of the public. In the country alone, there are still a massive number of people who hunt the online stores for PS5 stocks, despite already selling millions in North America alone.

PS5
PS5 Photo by Kerde Severin from Pexels

However, the PS5 is not the only technology that misses out on chips and processors in the latter part of 2020 and the present times, as the car industry also joins the dilemma. CNBC said that Chevrolet's manufacturing has been sharing the same shortage, with the Bolt EV and Chevy Malibu cannot continue distribution because of the processors.

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Despite car companies not competing directly with technology companies like Sony and smartphone brands, Chevrolet and the car industry still sees a shortage because of the semiconductor association's shortage. Semiconductor companies in the world all share the same sentiments of shortage and lack of supplies to produce their processors for the technology industry.

Semiconductor Companies are Also Struggling

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Advanced Micro Devices, a.k.a. AMD, and Qualcomm, both share the same sentiments that there are massive shortages in their production, thus causing a backlog among its customers and clients. Initially, it was reported as early as the end of 2020 and has been carried over this year.

According to Tom's Hardware, the PlayStation 5 is currently one of its largest clients that demands chips, and because of the most coveted console of 2020, processor supplies have decreased and raised an alarming shortage. Moreover, AMD relies on TSMC for parts and components, which is also struggling because of its other clients and production.

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Written by Isaiah Alonzo

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