There is a semiconductor shortage right now, and it is affecting all of us.

Semiconductors, or computer chips as they are more widely known, are part of almost every element of our lives these days. Not only do they appear in our computers, smart phones and laptops, they are also fundamental to all kinds of other devices, from cars to toasters to washing machines. As technology becomes more sophisticated, with the internet of things, and more cars become electric, the number of chips required will only increase.

All eggs in one basket

Given the prevalence of computer chips in modern equipment and machinery, it is staggering to find that more than half of the world supply comes from just one company, TSMC, in Taiwan. With a further 20% made by Samsung in South Korea, the two companies together account for three-quarters of the world’s microchip production, or around 750bn chips per year.

A global shortage

The inflexibility of this set-up has been brought to a head by the global pandemic, with significant swings in global demand causing real problems in the supply chain. In the motor industry, a big drop in sales at the start of 2020 meant many car manufacturers cancelled their chip orders. When the market bounced back unexpectedly quickly later that year, many of these firms were left high and dry, without the crucial chips they needed to meet the sudden surge in demand. One estimate puts lost sales at $60bn, with many car firms having to mothball production plants for lack of chips.

Not just cars

At the other end of the scale, the pandemic has brought an unprecedented demand for consumer electronics. The change in lifestyle has seen a huge rise in sales of everything from Play Stations and XBoxes to entertain the locked-down masses, to PCs and laptops for homeworkers. With companies like Apple far bigger customers than the motor manufacturers, they are inevitably jumping the new queue, making the semiconductor shortage even worse.

Why can’t we just make more chips?

It isn’t as easy as just increasing production. A new chip manufacturing plant is a high-tech environment and can cost as much as $20bn to build. Creating the cleanrooms required also makes it a lengthy process. But that doesn’t mean that other countries aren’t trying. Europe has set an ambitious target for 20% of its chips to be manufactured in the EU by 2030 and President Biden has said that he is “directing senior officials in my administration to work with industry leaders to identify solutions to the semiconductor shortage”.  Unfortunately, neither of these plans will help the immediate semiconductor shortage worldwide.

Geopolitical tensions

As if the limited manufacturing issues weren’t bad enough, the fact that 55% of world production is based in the disputed territory of Taiwan makes matters much worse. The simmering tensions between the US and China, and between China and Taiwan, make the global semiconductor market a stressful and secretive business. It is all far too complicated to go into here, but you can learn more about it by listening to the BBC Business Daily programme on BBC Sounds.

How long will the semiconductor shortage last?

Most estimates for the scale of the semiconductor shortage range from at least a few months up to the rest of this year and beyond. A recent fire at one of the big chip manufacturing plants has put many of these estimates back even further, and with continuing uncertainty over second and third waves of Covid across the world, no one can be really sure when the semiconductor shortage will finally resolve itself.

This makes it all the more important to maintain the equipment you have in the best possible condition by using expert computer support in Manchester, Preston and Blackpool from AGT. With uncertainty about where your next machines are coming from, your current IT system is more important to you than ever before. Contact our friendly team today to see how AGT can help your company to make its IT systems last longer.

When the chips are down, you can count on AGT!

 

Working from home may seem strange, but if you look back, you’ll be amazed at how many other ways the workplace has changed. New technology has radically altered the way we work, but most of these changes happened gradually, until the pandemic came along. Faced with tiers, lockdowns and movement restrictions, many people across the UK have found themselves working from home, often for the first time.

Most companies  would never have considered a remote workforce as little as 18months ago. Now they run their entire operation from the spare bedrooms and kitchen tables of their staff. Some people have come to love the freedoms and the work life balance that working from home brings. Others have found that they miss the banter, the collaboration and what the Chancellor, Rishi Sunak, describes as “people riffing off each other”.

So, is working from home here to stay, or is it a passing convenience that will fade as vaccinations and testing get the virus under control?
Industry opinion is split, with as many people predicting a permanent change as there are longing for a swift return to the office.

Working from home is the future

One strong advocate of the work from home model is Zoom, a name most of us had barely heard of last year. The video conferencing platform saw sales rise by 326% to $2.6bn in 2020 and predicts a further 40% rise in 2021. “The future is here with the rise of  working from home,” says CEO Eric Yuan.

Many companies in the tech sector have also taken to the working from home model. Spotify, Facebook and Twitter have all announced that working from home as part of their future plans. Microsoft predicts working from home part of the time to be ‘standard for most roles’.

Working from home is a fad

In the opposing corner, there are many companies who feel that working from home has had a negative effect on their productivity. JP Morgan and Barclays are typical of the financial sector in opposing the concept. Goldman Sachs boss, David Solomon, even goes as far as to describe working from home as “an aberration that we are going to correct as soon as possible.”

Even the Chancellor himself has weighed in on the debate. In a piece in the Daily Telegraph, he warned that some staff may quit if companies force them to work from home. “You can’t beat the spontaneity, the team building, the culture that you create in a firm or an organisation from people actually spending physical time together,” he said.

Here to help however you are working

At AGT, we have been working on throughout the pandemic, helping to keep companies connected. Whether they are soldiering on in the office, or struggling with remote networks as part of working from home. Our team can help your company to create safe, secure networks to connect remote workers. This ensures that they can continue to provide the same high levels of customer service, and enjoy the same degree of creative interaction with colleagues. We can also help with on-site computer support for remote workers who no longer have the luxury of calling their own tech team to fix their computer problems.

As companies return to their traditional offices, AGT will be on hand to support staff as they reacquaint themselves with the office systems, helping companies to get the most out of their IT and their team.

Flexible support whatever the future holds

From Nationwide Building Society, who have said that they will not force anyone back into the office, to Amazon, who plan to “return to an office-centric culture as a baseline”, there is no clear picture of what the future workplace will look like post-pandemic. But whatever your company’s plans, it’s good to know you can count on AGT computer support in Manchester, Preston and the Fylde.