No news has affected the computer industry other than the current GPU shortage. The shortage has affected almost every single part of the industry. Moreover, its roots lie within other international sectors. It’s an ongoing problem linked to nearly every tech industry in the world.
GPUs are one of the essential computer parts today. It’s no longer used for mere gaming. Now, GPUs are used for work such as video editing and animations. There are even some who use GPUs for crypto-mining. The current need for GPUs is why there is a shortage today.
The Pandemic and the Shortage
The pandemic is one of the primary reasons why the GPU shortage started. Millions of people worldwide now have to work at home, and because they don’t have sufficient equipment to do this, they have to invest in a new PC or laptop.
PC purchases have reached record-highs because of the pandemic. Many are purchasing PCs from retailers and computer building websites alike. Many are also buying from e-commerce platforms like Amazon and eBay. Every work-at-home employee is exhausting their options to get the necessary equipment for them to work.
Even though some of these employees purchase computers that don’t have high-end video cards, they’re still affecting the overall GPU market. In addition, GPUs and many other computer parts require microchips and semiconductors to be manufactured, and since there’s a microchip shortage, that’s further exacerbating the problem.
Microchip Shortage
The microchip shortage wasn’t supposed to affect GPUs entirely. But because millions of employees are purchasing computers and laptops, the shortage became a lot worse.
Much like the GPU shortage, the microchip shortage started during the pandemic. As a result, many manufacturers were forced to shut down their plants for a month abruptly. The lack of production led to backlogs, and these backlogs eventually started to rise until some plants were able to open after March.
Another problem was that consumers weren’t purchasing automobiles at the time. Instead, they resorted to bicycles and other cheaper alternatives. Since cars are the number one purchasers of microchips, manufacturers shifted their production focus. This shift led many manufacturers to panic, which further delayed production.
The increased demand for computers and laptops and the current microchip shortage contribute to the GPU shortage. However, some people are taking advantage of this situation, making the shortage a lot worse.
GPU Scalpers
Scalpers are the kind of people who would purchase ten of the same item. In doing so, they cause a temporary or artificial shortage in the market. Once the shortage starts, these scalpers would then take advantage of it by selling the items they’ve purchased at a premium. There are scalpers in every industry, but none are as bad as GPU scalpers.
GPU scalpers are making the shortage a lot worse for their selfish gains. Although some laws make this illegal, they’re not enforced very well. Moreover, sites like eBay thrive on these resellers. They take advantage of those desperate enough to make such a purchase.
Scalpers are problematic, and there’s no real way to tackle them head-on, especially if there are crypto-miners who are willing to purchase what they’re selling.
Crypto-miners
Another group of people contributing significantly to the GPU shortage is crypto-miners. Crypto-miners, or miners, for short, mine cryptocurrency to eventually sell to the market. They require high-powered GPUs and a lot of them.
These people are looking to purchase GPUs no matter the price because they know they’ll make a profit anyway. Their reckless buying of GPUs further disrupts the supply chain, and with no means of stopping them, they can easily turn the market upside down.
The Shortage Will Be at Ease
But there is some good news to this story. Many GPU companies such as NVIDIA have claimed that the shortage will eventually be at ease by the second half of 2022. Many manufacturers are now able to keep up with recent demands. Moreover, microchip manufacturers are planning to build plants in the US in hopes of curbing the microchip shortage.
The solution for the shortage comes from the new generation of GPUs coming from many GPU companies. Moreover, some of these GPUs are cheap and affordable. These GPUs aim to target the majority of the market looking for GPUs for their work-at-home computers.
This strategy looks good on paper, and it seems that everything is lining up to address the shortage once and for all. However, anything could happen during the pandemic. Hopefully, it wouldn’t be enough to disrupt the plans laid out by these companies.