Cost of computer chip crisis to world growing: Turkish expert

The most obvious effect of the global computer chip shortage on end-users is that prices will increase due to the deterioration of the supply-demand balance, and this increase has already begun, according to a Turkish expert.

Hakan Doğan, an associate professor with the Electrical and Electronics Engineering Department at Istanbul Medipol University's Faculty of Engineering and Natural Sciences, told Anadolu Agency that although the chip crisis is being felt more intensely in specific areas such as the automotive industry, it is also being felt in areas such as smartphones, game consoles and electrical energy converters.

According to Doğan, in addition, there would be effects such as the unavailability of products or long production times.

"Companies are delaying more advanced versions of their products and will make do with the products and chips in their inventory," he said.

Noting that the crisis is not limited to a specific product range or electronics field, Doğan said: "The main reason why it is felt more in the auto industry is that production slowed down at the beginning of the [coronavirus] pandemic as a result of car manufacturers reducing and canceling orders, thinking that demand would decrease, but demand remained high in real life."

Pointing out that there are many reasons for the crisis, Doğan said one of the important ones is the spread of working from home due to the coronavirus, and for this reason, the demand for computers and other consumer electronics solutions.

Mentioning the disagreements between the U.S. and China, Doğan said that due to the political crisis between the two countries as well as the U.S. ban on Chinese origin chip-makers such as SMIC, users turned to Taiwan and South Korean...