The Graphics Card (GPU), also called a video card, is the computer hardware responsible for rendering images to your monitor. This is done by converting data into a signal your monitor can understand. This piece of hardware serves many purposes, not just gaming, but for 3D Modelling, and Video Editing. Unfortunately, the pandemic has both limited the supply and increased demand for GPUs.
Nvidia Graphics Card, photo by @christianw on unsplash.com
Like the Central Processing Unit (CPU), GPUs are also made with semiconductors. Many digital consumer products in everyday life such as smartphones, digital cameras, smart TVs, smart washing machines, and smart homes also use semiconductors. These chips have been hard to come by for automakers and consumers, causing difficulties in a variety of industries. The cause is a combination of an increase in demand during the COVID-19 pandemic, and limited manufacturing capacity. On top of that, there is also a rise in demand from cryptocurrency miners.
A cryptocurrency is a digital currency that can be used to buy goods and services. Most cryptocurrencies are decentralized networks based on blockchain technology. Bitcoin a popular cryptocurrency is basically a computer file that is stored in a remote digital wallet. GPU supplies are disappearing even faster thanks to skyrocketing cryptocurrency prices.
cryptocurrency price tracker, photo by @austindistel on unsplash.com
GPU mining involves the use of GPUs to solve complex math problems to verify electronic transactions on a blockchain to mine a cryptocurrency. As the price of cryptocurrencies has increased, GPUs have also seen big price increases thanks to retail stock shortages.
The car industry is also affected by the chip shortage. The chips are mainly used in vehicles to control antilock braking systems, infotainment screens, and other electronic features.
Some tech companies are already seeking government funds to subsidize building more manufacturing capacity, but any increased production could take years. It’s clear that any plan may take time to have much impact.