Global scarcity of chips has affected almost every type of business, from car makers to manufacturers of sex toys. The shortage occurred late last year, when automakers thought demand would decline due to the Covid-19 pandemic. But they were wrong. In addition, other manufacturers have taken note of the large semiconductor orders from automakers and decided to increase their own.
Equipment, servers, sex toys, and heavy equipment manufacturers are facing the downfall of chip shortages, and companies that do not normally use chips as their core business are feeling the effects. Increasing demand coupled with decreasing availability has increased prices and waiting times for such goods, with companies rushing to acquire as many chips as possible.
After the pandemic, compulsory locksmiths saw an increase in demand for electronics, as people started to work from home and have fun at home (in more than one way). The chip shortage has saved a few companies with even some tech giants embarking on bulk purchases to protect themselves from the US-China trade war. Microsoft and Apple said a shortage of tablets and laptops saw hardware sales saw the biggest drop in sales.
A recent report by Goldman Sachs Group Inc. notes that semiconductors are the main manufacturing component for 12% of US gross domestic product.
In Shenzhen, China, Petoneer suspended the sale of some pet gadgets, including a robotic cat toy after its chip supply was over. Petoneer’s sales manager says the company is looking to see if it can trade readily available types of chips.
Crave, Inc., a sex toy company, was forced to redesign half of its products this year to cater for the chip shortage. Its CEO says a typical sex toy contains 30 different electronic parts, including chips. The company began chip accumulation late last year as distribution times began to increase. The CEO says they have been preparing for at least a year and possibly more than 2 years for a shortage.
So, those looking for a new and better way to have fun, the company says they are working to make its products still available.