It was the PlayStation 5 console that was the first machines that fell prey to the global chip shortage problem. As a result, the company faced a tough time to rollout the devices for the console fans and it continues to struggle and keep up with the pre-orders. Later the semiconductors shortage affected a number of other devices and now the latest 5G iPhones and Samsung Galaxy smartphones could be the next to face the wrath.
The makers of the devices now have a good reason to shift away from LCD (Liquid Crystal Display). The screens that make use of LCD show off sharper colors, high resolution, and also needs low energy to function. Moreover, they can also be folded and a majority of the smartphones as well as high-end TVs make use of this technology. On the LCD screen a single light is used to illuminate the full screen but on an OLED screen every dot light has an independent light which gives the pictures better definition. Due to the specialized requirements of the screens, they need special chips.
Till 2018, Samsung Galaxy phones were the only ones that made use of such displays. Nearly 90 percent of the OLED chips are made in South Korea. Later Taiwan Semiconductor Manufacturing company joined to make the semiconductors. Both of these companies are currently overwhelmed due to the high demand of chips. These chips are also used by the auto makers and server makers. The shortage has reached a record in 2021 and started off due to the coronavirus pandemic. Due to the COVID-19 restrictions, the operations continue to be restricted.
Moreover, the making of the OLED display chips is not an easy business as the manufacturing process is complex. Due to this there are just a handful of companies that make these chips. It has been advised that the display chips need to be customized for every company.
Photo Credits: Pixabay
