PC prices soar in Singapore due to global chip shortage – 15 June 2021

What is happening to PC prices?

Personal computers are getting more expensive in Singapore, with prices up nearly 60 per cent over the last five months. People may have to wait weeks longer to buy them, as makers try to get hold of semiconductor chips that are still in short supply. Other materials like wires are also getting harder to come by.


Why has the PC prices gone up?


pc prices global chip shortage


We are all working or studying from home. Every member in the family needs to use a notebook or a PC. The demands have increased. However, the production cannot keep up as the production workers cannot put as many hours as they could previously before the COVID period. To make things worse, the commodity prices have also increased exponentially due the workers inability to work in the mine safely. Thus, the prices for oil, iron ore, copper and other industrial metals has jumped. Finally, to put the last nail to coffin, shipping costs around the world has also gone up by up to 10 times in some shipping lanes. Recently, the some ports are operating at their lower normal optimum capacity and causing congestion. This will also created in some ports to clear their goods even slower, thus increasing more costs. These costs will be either absorbed by the trader or passed on to the retailer or consumers.

The recent US tightening ban on the import of semiconductor chips and equipment to China has slowed the production even more. Therefore, with more demand and less supply, the prices for all equipment that has semiconductor chips will naturally go up in the next few months.

For example, the prices of RAM has increased by 40%, which will increase the price of a PC or notebook by $50-$100. Generally, a PC or Notebook has more than 10 major components and these components has up to hundreds of chips to operate. Prices of PC and Notebook might increase between 5-20% in the next few months. Currently, the current low prices are still the existing inventory. When the next batch comes in, the prices will be climbing up soon than we can expect it.