Global Chip Shortage Could Dampen Christmas And Santa Clause

The global chip shortage has been rumbling on all year and still hasn’t gone away.

But what does that mean for Christmas? Will some presents be harder to get hold of or more expensive?

That depends on what you’re after and how late you leave your Christmas shopping.

Semiconductors are beneath the hood of an increasing number of products — from cars and e-bikes to washing machines and toothbrushes. Many of these chips are in short supply as the Covid pandemic has led to supply chain bottlenecks and increased demand.

Many of today’s electronic products contain a large number of chips.

“The issue we face is things made with chips don’t just use one chip,” Priestley said. “New smartphones have got many, many power control chips and it’s those chips that are in short supply.”

TSMC, Samsung and Intel, the heavyweights of the semiconductor industry, aren’t focused on making these older, less advanced power management chips because they can make more by selling more innovative versions.

Semiconductor-rich products like computers, smartphones and games consoles are likely to be popular Christmas presents, but there are availability problems, according to Glenn O’Donnell, VP and research director at analyst firm Forrester.

Sony’s PS5 and Microsoft’s Xbox Series S are widely unavailable, for example, as is Google’s Pixel 6 Pro smartphone.

Berlin-based Jack de Santis, CEO of repair service Rebel Technology Labs, told CNBC that he’s looked “everywhere” for a Google Pixel 6 Pro — but to no avail. He’s unsure if he will stick with his old phone or get the regular Pixel 6, which is still available in a few places. “Both options are compromises I’m not happy with,” he said.

Battling The Bots

It’s not just other shoppers that consumers are competing with for in demand items this Christmas. Some people are using automated bots to snap up popular items as soon as they become available online at face value.

“The bots buy up high-demand products to corner the market so they can then sell these at inflated prices,” O’Donnell said.

There are countless examples of PS5s and Xbox Series S consoles being sold on eBay, Facebook Marketplace, Gumtree and other buy-and-sell platforms for considerably more than the recommended retail price.