Global events
7 unexpected consequences of the global chip shortage (updated february 15 2025)
By Evelyn Reed
Published: 15 Feb 2025
7 Unexpected Consequences of the Global Chip Shortage (Updated February 15, 2025)
Hey there, folks! Remember when the news was all about toilet paper shortages? Well, this is kinda like that, but...way bigger. We're talking about a global chip shortage, and it's impacting things you probably never even thought about. I mean, seriously, who connects a lack of microchips to, say, food? Trust me, it's more connected than you think. So grab a cuppa (or a beer, no judgment!), settle in, and let's dive into some surprising ripple effects of this tech-driven crisis.
empty supermarket shelves with a single bag of chips | Image: Supplied
1. The Great Salad Shortage of '24 (and Beyond)?
Okay, maybe 'Great' is a bit of an overstatement. But hear me out. Many modern farms rely on sophisticated sensors and automated systems – all powered by microchips – to monitor soil conditions, water levels, and even the ripeness of crops. When these chips are scarce, guess what happens? Farming efficiency takes a hit. My cousin, a farmer in Iowa, told me he had to resort to manual checking of his crops, which meant higher labour costs and more potential for spoilage, even with smart tools he had before the crisis! This increased the price of his produce, and many farmers are faced with similar problems. So, yeah, your next salad might be a bit pricier (or more limited) than usual.
farmer examining crops with a worried expression | Image: Supplied
2. The Smart Fridge Fiasco
Remember those smart fridges that tell you what you're out of? Yeah, those rely on chips too. The shortage meant fewer smart fridges hit the market. But, it gets crazier: reduced production of these fridges also impacted the production of other appliances that used similar components. This ripple effect is often overlooked, but it shows how interconnected modern production is. What do you think will be the next unexpected shortage caused by this?
disassembled smart fridge highlighting the microchips | Image: Supplied
3. Restaurant Tech Troubles
From point-of-sale systems to kitchen automation, restaurants rely heavily on technology. The chip shortage meant delays in getting new equipment – or even repairing existing systems. This resulted in longer wait times, frustrated customers, and even some restaurant closures. It affected independent restaurants mostly, because larger chains had more resources and backup strategies. This really highlights the difference in resilience for smaller businesses versus larger ones.
empty restaurant with a closed sign | Image: Supplied
4. The Unexpected Rise of...Manual Can Openers?
Okay, this one's a bit of a stretch. But the shortage did highlight our dependence on automated systems. Think about all the machinery involved in food processing and packaging. When chips are scarce, production slows down. This can lead to higher prices and even shortages of processed foods, making you appreciate those low-tech can-openers!
a person using a manual can opener | Image: Supplied
5. The Slowdown in Food Innovation
New food processing techniques and smart packaging often depend on advanced technologies. The chip shortage put a damper on R&D, meaning fewer innovative products and slower improvements in food production processes. We might have seen fewer new products on supermarket shelves; it really slowed down the innovation cycle.
scientists in a laboratory with food samples | Image: Supplied
6. Supply Chain Snags
The chip shortage exacerbated existing supply chain issues. Delays in shipping and transporting food products because of malfunctioning tracking and scanning devices made the whole system even more inefficient. This added additional costs which were passed on to the consumers, which led to increasing inflation.
a complex map illustrating global supply chains | Image: Supplied
7. The Impact on Food Security
For many, the chip shortage isn't just an inconvenience; it's a serious concern for food security. Disruptions in food production and distribution can have devastating consequences, especially in vulnerable communities. This highlights the importance of diversifying our technological supply chains and building greater resilience into our food systems.
a global map highlighting areas of food insecurity | Image: Supplied
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