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Chip Shortages May Occur as a Result of Factory Shutdowns in Ukraine

According to Behringer, half of the production line is sourced from Ukraine.

Russia’s involvement in the Ukraine conflict has worsened the global chip scarcity issues, according to Behringer, a manufacturer of audio equipment.

As of Sunday, March 13, the firm announced that, despite dealing with shortages of chips required in the creation of DJ equipment for the previous two years, the situation has only gotten “much worse.”

Following the invasion of Ukraine by Russia, according to the audio corporation, the vast majority of semiconductor chips are made by neon gas produced in Ukrainian companies that are no longer in operation.

The problem, according to Behringer’s additional comments this morning, may be addressed by 2023 if “tech giants” begin to spend money into production in other parts of the world.

Chip shortages were first reported during the start of the pandemic when demand for DJ equipment increased, just after a factory in Japan that produced the majority of Denon and Pioneer’s chips was destroyed by fire.

Brexit, which resulted in an increase in VAT, tax, and import levies, as well as extra-long lead times due to customs, was one of the underlying drivers for such shortages in the United Kingdom.

Behringer, on the other hand, believes that there is still potential for next year. Intel has prepared the groundwork for one of the world’s largest chip facilities in Ohio, with an investment of $20 billion, according to a report from Reuters.

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