We Are Going To Have Display Shortages For A Long Time

Display Shortages

The Main Point

Display shortages are going to be a nightmare. There have been a ton of shortages this year, and the Display shortage seems like it will go on for a while. Just when Covid is getting better, natural disasters start slowing down production. 2020 really has been a terrible year.

Nobody likes shortages. They raise prices of products and make them much harder to get your hands on. There have been many different shortages throughout 2020, and now there is also a display shortage. This could raise prices on everything from monitors, to TVs and even mobile devices. And, this shortage will probably last for a while, too. I can’t believe that 2020 could possibly get worse, but it is just one bad thing after another. 

Display shortage

What caused this shortage?

There are many factors leading into this display shortage. The first of them is the earthquake in Taiwan. This affected AU Optronics, one of the largest makers of LCD displays in the world.  AU Optronics immediately stopped production when the earthquake happened and quickly resumed production afterward. This could mean that not too many displays were lost, but AU Optronics makes over 100,000 displays a day. That is a ton, so there is a very high possibility that a lot of displays were lost. In November, they made over 10.81 million displays, which is a ton. Hopefully this won’t cause a shortage, but it is definitely possible.

Japanese power outage

The second cause involves the Japanese power outage. This affected NEG, which owns 10% of the world’s glass substrate manufacturing capacity. Because of this, companies will have to buy from other suppliers to get display components. The largest problem that this caused was damage to some of NEG’s equipment. This could take months to fix, and that could greatly slow down production.

Covid-19

Now, onto the final and most obvious cause. Covid-19 has been the largest cause of shortages in 2020, and it is likely a cause here, too. If an employee catches Covid, a company would have to keep them at home. They also have to follow Covid guidelines, further slowing down production. Covid is basically slowing down the production of everything right now.

display shortage

What will this shortage cause?

This shortage could have many affects on the technology market. One of the largest problems that this could cause is higher prices. This could possibly raise prices on Monitors, TVs, tablets and maybe even smartphones. Prices have already been going up due to Covid, so further causes for an even larger shortage are very bad. It could also just cause many displays to be out of stock everywhere. There are a lot of things that are already out of stock, so this could make things even worse. Sadly, this shortage could also last months based on how many items were lost in these situations. I really hope it doesn’t, but it could.

The Main Point

Display shortages are going to be a nightmare. There have been a ton of shortages this year, and the Display shortage seems like it will go on for a while. Just when Covid is getting better, natural disasters start slowing down production. 2020 really has been a terrible year.

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