Global Chip Shortage: What Does It Mean for Cameras in 2022?
January 13, 2022
Image Credit: This is Engineering
A severe shortage of semiconductor chips is making it really hard to buy the tech toys we love and the electronic devices we rely on.
Semiconductor chips, aka computer chips or integrated circuits, are no longer just a computer component; they have many applications and are widely used in digital products, electronic appliances, cars, social infrastructure, and of course, modern cameras and lenses.
Why is there a shortage?
At the beginning of the Covid-19 pandemic, the manufacturing of chips was briefly interrupted. And although the disruption was only short, a significant spike in demand quickly followed, leading to a global shortage of semiconductor chips.
When homes became the new office, classroom, and entertainment hub, we soon realised that our current tech setup wouldn’t cut it. Devices were upgraded to keep every member of every household productive, connected and entertained - computers, TVs, webcams, speakers, microphones, graphics cards, internet, and gaming consoles.
Given that chip production was only briefly put on pause, we essentially have a demand issue rather than a supply issue. And as we continue to digitise every aspect of our lives, the call for semiconductor chips will continue to rocket.
Can’t they just make more chips to meet demand?
Well, there’s only a few semiconductor manufacturers in the world, and they supply virtually every company that incorporates integrated circuits into their designs. The chip manufacturers were already producing at a high percentage of their total capacity before the rise in demand. Now they’re pumping them out at max capacity, and it’s still not enough to go around.
Throw in some trade issues, fire and extreme weather events, and we’ve got ourselves the perfect storm for a global chip shortage that’s been brewing for years.
Image Credit: Alexander Andrews
Image Credit: Jakob Owens
What does that mean for our favourite toys?
These tiny chips are a crucial component of modern cameras and lenses. Like basically every other industry right now, camera companies are struggling to acquire the chip quantities they need to meet their demand. Inevitably this means camera companies will have to prioritise chips based on demand and profit.
Over the last few months, Sony Japan has issued several notice and apology statements regarding the effects of global semiconductor shortages on parts procurement for digital imaging products. Production of the ɑ7 II and ɑ6100 have entirely ceased. There was no significant loss there as the ɑ7 II was well due for retirement anyway.
However, production of several other lines has been temporarily halted, with no indication of when or even if they will resume. Notable casualties include the ɑ6400 and ɑ6600, the relatively new ɑ7C, and the very new ZV-E10, sadly only a few months after its official release. Sony’s likely goal is to conserve chip supply and funnel them into their most profitable, full-frame lines.
Sony isn’t alone in being affected by supply chain issues. In recent months, almost every camera manufacturer has released one or more official statements advising of delays due to parts shortage.
Canon announced shipping delays for several RF lenses and possible waits of ‘more than half a year’ on new orders for the recently released EOS R3 and RF14-35mm F4 L IS USM lens.
Originally due for arrival in 2021, Panasonic was forced to hold off on releasing the new Lumix GH6 and are now aiming for early 2022.
Fujifilm issued a press release earlier last year explaining that there would be delays to the X-S10 and a whole host of XF lenses due to parts procurement. Since then, Fuji has made further delay announcements for the GFX50S II kit and the new XF 33mm f/1.4 lens, although they state this is due to pre-order demand being higher than expected rather than being a parts issue.
Image Credit: Dan Christian Padure
When will the shortage end?
There’s some talk that the pressure will ease this year, but most experts predict strong global demand will continue to outstrip supply well into 2023 and possibly beyond.
Sony clearly expects the shortage to drag out because they have teamed up with Taiwan Semiconductor Manufacturing Co. (TSMC) and jointly announced they are building a new semiconductor manufacturing facility in Japan. Construction is scheduled to begin this year, and the new fab is expected to be fully operational by the end of 2024.
So what next?
Well, it’s not all doom and gloom. The situation hasn’t affected every product. Yet. There was and still is existing stock. But remaining inventory won’t last forever, and manufacturers will not be able to replenish it at the current demand rate.
Time might be the only real solution to this shortage. Building new fabs will increase manufacturing capabilities which will help things down the track. But that’s still the best part of two years away.
In the meantime, it might force manufacturers to innovate product designs to be more chip efficient and evaluate their supply chain management. Perhaps this pain point could be a catalyst for a much more efficient and stable supply chain in the future.
What it boils down to is that if you need a new camera or lens, and it’s available, you should probably go ahead and grab it. If it’s out of stock, place a backorder. At least then, you will have secured your spot in the queue for when the stock does arrive in the country.
Most of all, be patient. After all, you’re not just competing with other camera buyers; you’re competing with everyone who’s trying to buy a new PC, video game console, fridge and even a car.