Graphics Cards Are Still Impossible To Find – Logistics Expert Explains Why

The global chip shortage has hit every subset of the consumer technology industry but it has made PC graphics cards almost impossible to buy right now. While there are multiple reasons for the unavailability of GPUs in the market, including the boom in cryptocurrencies and the resultant increase in crypto-mining activities, the continued lack of semiconductor supply means that GPUs have gone MIA from shop shelves at local outlets and online stores.

The chip shortage has not only resulted in gamers not being able to buy new GPUs for their gaming rigs, it has also incentivized scalping, with people buying up graphics cards in bulk at retail prices and then reselling them to consumers at substantially higher rates. The situation is unlikely to change any time soon, although both AMD and Nvidia say they are trying to increase supply going forward.

In an interview with PC Gamer, Professor Thomas Goldsby, a supply chain researcher, said that the chip shortage problem could be attributed to a multitude of reasons. According to Goldsby, the various problems facing the industry have created a perfect storm of sorts, resulting in the lack of availability of CPUs and GPUs for retail buyers. While Goldsby pointed to the high demand from OEMs and end-users as one of the main reasons for the ongoing chip shortage, supply chain access to raw materials and slow transportation during the pandemic have also contributed to the current situation. Calling the present scenario a ‘Black Swan Event‘, Goldsby said that in spite of enhanced supply chain risk management, nobody was prepared for a situation where almost everything that could have gone wrong did go wrong.

The Chip Shortage To End Next Year?

Goldsby also said that the shortage in unlikely to end as long as demand stays strong. What’s more, supply capacities need to increase and transportation bottlenecks need to ease before consumers will see any light at the end of the tunnel. According to Goldsby, things could start getting back to some semblance of normalcy by next summer. However, given that almost every type of raw material used by the semiconductor industry is facing a supply crunch, there’s no guarantee that things will be back to normal even a year from now.

In fact, semiconductor companies and foundries are not so confident about things getting back to normal next year. Intel and TSMC are reportedly both expecting shortages to continue well into 2023. According to Intel CEO Pat Gelsinger, the chip shortage might go on for “a couple of years” and until manufacturers can catch up with demand. TSMC CEO, C. C. Wei, also told investors back in April that the status quo might continue “at least” until 2022.

Source: PC Gamer