2022 supply costs continue to rise worldwide, from CPU, GPU to other semiconductor material and parts. Demand and supply, this will continue to impact on the new product sales, decline market, postpone purchase and shift to substitution or second/used market.
As the shortage continues, the price continues to rise to an unusual level. Shift to virtualization, cloud computing is one way. Most of the enterprises revised their forecast and capability for manufacturing, which impacted on their sales figure.
While traditional PC dependency on various suppliers, such as CPU, GPU continue to face shortage till 2023, for those who do not want to pay for the premium and shift completely to substitution products to fulfill their needs. For those new vendors who propose a single system on chip (SoC), with the cpu, gpu and memory integrated into one, will continue to capture the market as an alternative for most of the new hardware requirements.
For those who can wait and are not willing to pay for the premium, will shift to a second/used market for sourcing. Cryptocurrencies boom and attract so many people in the crypto mining operations (where one of the factors make it very hard to get GPU) will see decline, as more and more countries start to ban it legally, and force a lot of people to disinvest in the crypto mining.
The top and leading finance investor guru is also stated for non value creation of cryptocurrencies, also making it more a short term trading item, where most of the market depends on someone to pass the cryptocurrencies over, so they can exit the market. With all the unstable variable interplay, this is why more and more economic analysts forecast 2022 as the year for the economic depression everyone is expecting, where COVID-19 pandemic will postpone the landing of it from 2021. As more and more analysts have adopted the approach, and it has materialized in the headlines across the countries, a massive layoff wave has started. Once the government aid funding is over, the impact will be accelerated and each enterprise needs to well prepare for the plan to adapt to it in your business plan and operations.
The Omicron variant will be one variable worth to closely observe, whether it will end up like what Delta variant impacts the globe. The chain of reaction will halt most of the restart progress.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
