Shortage of microchips causing delivery delays for many products

JOPLIN, Mo. — If you want to buy a car, microwave, refrigerator, or anything else that contains a particular type of electronic component, don’t be surprised if you have to wait a while before it gets delivered.

Because of their diminutive dimensions, it’s not hard to figure out why they’re called microchips, and they’re found in thousands of products like computer towers, microwaves, washing machines, refrigerators as well as cars.

And they’re in very short supply thanks to the global pandemic. John Motazedi, CEO of SNC Squared, says it started with the initial shutdown of microchip manufacturing facilities around the world from the first wave of covid-19 last year. Then he says the demand for them jumped.

John Motazedi, CEO, SNC Squared, said, “Everybody started working from home, so now everybody needed computers because they typically didn’t have computers that were adequate at home, and even phones, you know cell solutions etc. to work from home.”

Then, he says something unexpected happened, the sale of new cars jumped, creating an even greater demand.

“Along with that the release of new 5G technology, so high speed chips, high speed technology, high speed transmission, so manufacturers of those chips said well, why don’t we get into the high revenue market and actually start generating high revenue chips as opposed to the basic stuff we were regularly doing.”

As a result, depending upon where you by appliances, you may have to wait months for them to get delivered. But that’s not the case at one retailer in the area. Greg Freeman happened to buy many appliances before the microchip shortage started.

Greg Freeman, Freeman Liquidators, said, “Our inventory and the way that we buy is about the opportunity to buy from a loss by an insurance company, so that we, when we buy, we have the product here you come in, you shop, you see it, you buy it, you go home with it.”