AMD Stock – PS5, Chevy Both Hit by Chip Shortage—Why is This Happening?

Electronic devices and gadgets are a massive demand in the world, particularly when the pandemic started as everyone was required to transition to a full digital setup at home to connect in school and work. However, this meant that the demand for gadgets rose and so does its components, which did not expect to be hit like the PlayStation 5 and now, the car industry.

Ever since its release in November 2020, Sony and the PlayStation 5 have faced the massive issue of PS5 stock shortage and limited availability to be released on public but has not relayed the reason behind it. However, as the months progressed, it was discovered that Sony has trouble in supplying the different components that make the console. 

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Sony has been plagued by providing the world with stocks of the PlayStation 5 which still has massive shortages and demand across the world, despite delaying the release in several regions including the UK and Africa. The components that were lacking are reportedly the processor chips that would control the entire console, which is an eight-core AMD Zen 2.

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PS5 Chip Shortage is Shared by the Car Industry

According to CNBC’s report, the PlayStation 5’s chip shortage has been a problem for months, which directly relates to the reason why it still does not have enough stocks to meet the demand of the public. In the country alone, there are still a massive number of people who hunt the online stores for PS5 stocks, despite already selling millions in North America alone.

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PS5

However, the PS5 is not the only technology that misses out on chips and processors in the latter part of 2020 and the present times, as the car industry also joins the dilemma. CNBC said that Chevrolet’s manufacturing has been sharing the same shortage, with the Bolt EV and Chevy Malibu cannot continue distribution because of the processors.

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An electric cable is attached to the side of a Chevrolet Volt vehicle during a viewing on Capitol Hill July 19, 2007 in Washington, DC. The Volt is a plug-in electric vehicle which will run its first 40 miles without using any gasoline, and then the battery pack will be re-charged by a small internal combustion engine that runs on gas, diesel or ethanol when required. The vehicle is expected to be on the market by 2010.

Despite car companies not competing directly with technology companies like Sony and smartphone brands, Chevrolet and the car industry still sees a shortage because of the semiconductor association’s shortage. Semiconductor companies in the world all share the same sentiments of shortage and lack of supplies to produce their processors for the technology industry. 

Semiconductor Companies are Also Struggling

(Photo : Photo by Olivier Collet on Unsplash )
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Advanced Micro Devices, a.k.a. AMD, and Qualcomm, both share the same sentiments that there are massive shortages in their production, thus causing a backlog among its customers and clients. Initially, it was reported as early as the end of 2020 and has been carried over this year.

According to Tom’s Hardware, the PlayStation 5 is currently one of its largest clients that demands chips, and because of the most coveted console of 2020, processor supplies have decreased and raised an alarming shortage. Moreover, AMD relies on TSMC for parts and components, which is also struggling because of its other clients and production. 

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Written by Isaiah Alonzo

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