KELOWNA, British Columbia, August 30, 2022 (Newswire.com) - Many sectors, from electronics to informatics and from the defense industry to automotive, encountered the global chip crisis after the pandemic. There are numerous factors behind the silicon chip shortage, such as poor planning, insufficient production, and political mistakes. Due to the prohibitive price increases in electronic product trades, supply and demand balance in the market could break down. However, according to the CEO of IMEX Holding, Martin William Edelberg Sorensen, chip shortage can be controlled by adopting smart solutions.
According to the data announced by the London-centered statistical organization Deloitte, chip shortage between 2021-2022 affects cumulative revenue by 500 billion dollars. These tiny chips, involving integrated circuits, are used in various sectors and will be used in new areas evermore. According to the CEO of Europe's leading retail and mass electronic product trading company IMEX Holding, the chip crisis is inevitable. However, the process could be much shorter and harmless if effective strategies are developed in the supply chain.
WHICH PRODUCT GROUP IS THE MOST AFFECTED BY THE CHIP CRISIS?
Although the silicon chip crisis was triggered by the Covid-19 pandemic, the problem started long ago. It is mainly based on a poorly managed process that started before 2020, but the increased need for technological equipment after the pandemic made the crisis colossal. While it is remarked by some sources that a bigger crisis may occur after 2022, the most affected product groups from this shortage will be smartphones, computers, automobile industries, according to the Deloitte 2022 semiconductor chip report.
It's known that the chip crisis affects the way consumer electronics distributors work. According to the statements of IMEX Holding CEO, the fact that consumer electronics became a vital need in recent years triggered the shortage and as one of the biggest electronic products suppliers in Europe, IMEX Holding has focused on enhancing the overall capacity and controlling the supply process more efficiently.
HOW DOES THE FAILURE TO SOLVE THE CHIP PROBLEM IN TIME AFFECT THE PRODUCT SUPPLY IN EUROPE?
According to Statista's 2020-2030 semiconductor chip prediction report, the smartphone market will be the main sector by 2025, with a 116 billion dollar share, and industry revenues will expand rapidly thereafter. Even while this situation poses a risk to chip demand, Sorensen believes the situation is not as dire as it appears and can be resolved by implementing sensible solutions.
"Chip crisis is expected to grow because of the new developments like i̇nternet of things and artificial intelligence, however, as IMEX Holding, we foresee this problem and shape our services accordingly. With the help of a hybrid working model, we focus on supplying products in time and enabling real-time tracking. Since we use a synchronized system, we have completed our preparations to meet European electronic product demand as expected."
Source: IMEX Holding