Prices of popular gadgets such as PlayStations and iPhones could rise because of microchip shortages caused by a “perfect storm” of coronavirus-driven demand, supply chain disruptions and trade war stockpiling, the experts warn.
In the months after the pandemic hit, people stuck at home went on a spending spree to buy items including extra monitors, new computers and tablets – each of which runs on all-important chips.
Compounding the crisis are US-China tensions – Huawei stockpiled semiconductors last year before American sanctions aimed at cutting the tech giant off from global chipmakers kicked in, adding further pressure to supplies.
The squeeze in the market was highlighted when automakers, enjoying a pick-up in car-buying, tried to source specialised semiconductors, only to find manufacturers had prioritised consumer electronics and could not fill orders.
