How the Covid-19 led to a chip shortage and a work-from-home global population
Total Laptop market: 85020 million units in 2022
The digitalization of our daily routines has created a need for portable equipment for our activities. Laptops and notebooks are no exception: our access to banks, entertainment channels, information sites, creation and communication tools are increasingly used on a personal level and it is becoming more common for each person to have one. This demand has been driven and accelerated exponentially by the Wuhan virus pandemic. Legal, logistical and health safety restrictions were imposed across the board with important consequences for consumers. First, we find that companies, corporations and governments shifted their offices to remote work (1), creating a need for versatile and comfortable equipment to work from home (2).
This change puts pressure on companies and governmental entities to expand their IT infrastructure in search of options more suited to their processing needs and workloads, leading different actors involved in the lifecycle of this equipment to rethink solutions. On the one hand we find the expansion of digital services (such as BPOs, KPOs, ITES and Web Services) to meet this demand for laptops with increasing workloads.
On top of this we find pressures on the supply and distribution chains involved in producing new ICT equipment as a consequence of the legal restrictions imposed by the virus. Many factories producing the chips needed for any ICT equipment were temporarily closed (3), creating a shortage of these parts.