Chip Shortage Provides an Opportunity for Enterprises

Semiconductors are small components, but they help power the brains of much of our everyday technology, from mobile phones to cars. Unfortunately, due to the pandemic and recent tariffs, there is a semiconductor shortage. Major electronic brands like LG and Samsung have been open about the impact on electronic manufacturing. Samsung’s head of investor relations, Ben Suh, said “Due to the global semiconductor shortage, we are also experiencing some effects especially around certain set products and display production.”

The automotive industry was one of the industries greatly affected by the shortage. Jaguar, Ford, and Volkswagen have shut down factories, and others have stalled production. In addition, some car manufacturers are removing tech-enabled features to accommodate for the lack of supply. As a result, consumers and manufacturers alike are now looking to the used car market as an alternative. According to the US Bureau of Labor Statistics, used-car prices jumped 21% last year. The current pricing is more proof of the scarcity in the market.

Although many sectors are struggling with the shortage, it can be an opportunity for others. Liquid Technology’s team is seeing this reflected in the market first-hand. “With the recent chip shortage, we’re finding that demand in some cases has tripled for existing stock,” explained Roman Vochick, Liquid Technology’s Remarketing Manager.

Is your company looking to sell your excess IT equipment? If so, your organization could receive a ROI on your retired hardware. We can provide you a free quote. Contact us now by email or call us at 1-800-797-5478 for a free quote.