Last year, the coronavirus pandemic pushed the world into the digital realm, with millions of individuals working and studying remotely. There was a sudden surge in demand for gadgets such as smartphones and laptops. This resulted in an industry-wide struggle to keep up with the demand.

One of the major repercussions of this situation is the shortage of chipsets that initially affected the automobile industry and is slowly creeping into the smartphone industry. The shortage has persisted for months and now smartphone makers are grappling with the challenge of increased smartphone production costs.

In a recent statement, Xiaomi’s president Wang Xiang said that companies have been dealing with increased production costs due to the shortage of semiconductors needed for smartphones. Despite their efforts, the increased production costs would lead to higher prices of several of its forthcoming smartphones.

Xiang promised that Xiaomi would continue to offer competitive prices as it seeks ways of optimizing its production processes but they will not be as low as the smartphones already released.

Experts believe that the chipset shortage will continue until the end of this year. Some chipset makers have announced plans for expansion in capacity but the impact on global chip supply may not become apparent until after two years due to the complex processes involved. Moreover, some governments are also taking steps to stimulate production.