IC shortage and the consequences for the music industry

IC tekort

Integrated circuits, better known as ICs or chips, are of great importance to the music industry. Every device where analog signal is converted into digital audio often contains one or even more ICs.

Demand for chips is high at the moment

No one can have missed it, there is a worldwide corona pandemic and every country has taken measures to contain the virus as much as possible. A consequence of these measures is that many events are cancelled, people are increasingly working from home and are also increasingly making music at home. Partly because of this, there is currently a lot of consumer demand for music equipment. And since many equipment uses chips, the industry demand for these components is also increasing.

Music industry is relatively small

However, the music industry is a relatively small global consumer of ICs, certainly in relation to other industries. And within the music industry, the share that makers of guitar pedals use chips is also relatively small. A very large buyer of chips is the car industry and this industry also has a lot to spend.

IC shortage and rising prices

As a result, an IC shortage has arisen and prices are rising. Chips are not easy to make, it takes about 3 years before a new factory is built and the investment in such a factory is estimated at about 10 billion. What also does not help is that an important chip supplier for the car industry burned down in March of 2021.

Long delivery times and scarcity

All this has consequences for the production of guitar pedals. Many pedals use chips, especially digital pedals or pedals with analog components and digital control. Delivery times of pedals from MXR , Electro Harmonix , Chase Bliss and others are currently increasing. Some pedals are bad or even no longer available at all. Unfortunately, it is no different and it is expected that it will take some time before the situation is somewhat normalized again.

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