Overview
The chip shortage is one of the critical situations that impact the production of Raspberry Pi 4. There is a time when there is an increasing demand for a raspberry chip for different models and especially for Raspberry Pi 4. The Raspberry Pi 4 supply problem brings another issue in the semiconductor supply chain. It is the late demand from last year that there is a shortage of semiconductor supply. Moreover, the chip shortage hit the automotive market as there is an increasing demand for the latest technologies. It is a fact that COVID-19 has a significant impact on causing the shortage.
The impact on production and availability
The CEO of Raspberry Pi, Eben Upton, revealed the news of chip and supply problems in their blog. He wrote: "As you will have noticed, it can be hard to buy a Raspberry Pi unit from stock at the moment."
According to Upton, the Raspberry Pi foundation can manufacture half a million single boards and computer modules each month. Manufacturing units will not be able to boost production due to supply constraints, leading to a severe chip shortage that will impact the production of Raspberry Pi 4.
The market demand for Raspberry Pi 4 increases day by day, especially in 2021. Upton said: "We now have significant order backlogs for almost all products. In turn, our many retailers have their backlogs, which they fulfil when they receive stock from us. These backlogs absorb Raspberry Pi units as fast as (or faster than!) we can produce them, with the result that little of our production volume ends up being immediately available on reseller websites."
Prioritizing commercial customers
The Raspberry Pi Foundation needs to make tough decisions to meet consumer demands. Upton said: "Right now, we feel the right thing to do is to prioritize commercial and industrial customers — the people who need Raspberry Pis to run their businesses — we're acutely aware that people's livelihoods are at stake. There is currently enough supply to meet the needs of those customers. Unfortunately, this comes at the cost of constrained supply for individual customers, who might be looking to buy a small number for home projects or prototyping."
Pricing changes
If we talk about the impact of chip shortage on its price, the single-board Raspberry Pi 4 saw approximately a $10 increase in previous retail prices. It is the first time the project faces a price hike due to its costs. The company CEO Upton announced the prices:
The 4GB Raspberry Pi 4 and 8GB Raspberry Pi 4 versions will remain at $55 and $75. For those relying on a supply of $35 2GB boards, the project will bring back those 1GB Raspberry Pi 4 modules, priced at $35.
According to Upton: "This provides a degree of choice: less memory at the same price; or the same memory at a higher price."
He continued: "As many of you know, global supply chains are in a state of flux as we (hopefully) emerge from the shadow of the COVID-19 pandemic. In our industry, semiconductors are in high demand and short supply: the upsurge of demand for electronic products for home working and entertainment during the pandemic has descended into panic buying as companies try to secure the components they need to build their products... At Raspberry Pi, we are not immune to this."
Looking forward
The project maintains seven million of its boards in whole years, and the product maintains its level even during the pandemic. The demand for Raspberry Pi 4 has increased from last year, and it has caused a chip shortage that will impact the annual production of raspberries.
In the end, Upton concluded: "These changes in pricing are not here to stay. As global supply chain issues moderate, we'll keep revisiting this issue, and we want to get pricing back to where it was as fast as we can."
By Lauren Rose Eddy