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  • McKinsey Electronics

Chip Shortage Impact on Digital Radio

What is a digital radio? Were you ever curious about what digital radio is and what basic electronic components are utilized for its functioning? On the other end, what are the potential hazards or challenges that might interfere with its supply or manufacturing?

It is amazing to know that any electronic device, including a digital radio, is based on a microchip or semiconductor—the catalyst in charge of the transmission of electric current in electronic devices. As such, it enables the conversion of the original sound (called the analog form) into digital form, and without these chips, digital radios do not exist.

However, since early 2021, the recovery from COVID-19 pandemic served as a direct stimulant for the chip shortage worldwide—the issue that also impeded digital radio manufacturing and supply. Also, the dreadful war between Russia and Ukraine had shortcomings in hindering to a large extent the production of these microchips among which is the digital radio segment: 2022 has so far been marked by production disruptions across many fronts. In addition to existing semiconductor shortages, the Russia-Ukraine conflict and COVID-19 outbreaks in China have affected global supply chains and auto production. Sandeep Deshpande, Head of European Technology Research.

Interestingly, there are positive forecasts from key players in the semiconductors market about substantial progress in this sector: More chips will become available in the second half of 2022 and the shortage is nearing the end’’ as per J.P. Morgan Research.” Fortunately, this will positively impact the digital radio semiconductors supply chain, which will subsequently preclude the supply crunch issue. At times when the supply chain for semiconductors continues to waver back and forth, you can always rely on McKinsey Electronic as your strategic partner in the trade and supply of these microchips as well as backing you up with the related consultancy on circuits redesign for digital radios and other technological chip-based technologies.

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