Small firms navigate chip shortage

Electronics manufacturing companies around the world are facing increasing pressure due to the chip shortage crisis, which has led to an unprecedented rise in production costs, with a significant shift of components toward the artificial intelligence sector. This has resulted in higher product prices from major companies like Apple and Microsoft, while smaller firms are hit even harder, experiencing squeezed profit margins and projected sales declines. The market is currently witnessing a surge in chip prices that have increased by over 260%, as the challenges and impacts of the crisis continue to expand.

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