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Microchips are an essential component of every electronic product,
from your TV remote control to desktop and laptop computers. During
the Covid-19 pandemic demand for electronic equipment items skyrocketed!
Confined to our homes we needed entertainment and the means to connect
with other people online. As a result, demand for laptops, ipads,
smartphones and video game consoles increased significantly.
This put enormous pressure on the supply chain when the microchip
factories were able to reopen. Recently demand for new cars, which
contain numerous microchips, has bounced back. Not surprisingly,
the combination of these factors has sent microchip buyers into
a panic. And we all know what happened with panic buying of toilet
rolls! Panic buying in itself creates shortages.
The global shortage of microchips is now affecting the supply of
most computer products, including network switches, routers, laptops,
wireless access points and smartphones. And this in turn is leading
to an increase in prices.
Some of the largest tech companies including Apple, Sony and Samsung
have increased lead times for their products and delayed the launch
of new ones.
The car industry has been hit hard, with customers having to wait
six months or more for new car orders.
The big microchip producers are looking to expand their facilities
to meet the growing demand, but it will take at least a year before
this expansion delivers the additional microchips required. Experts
in the industry are predicting it could take up to two years before
the supply of microchips is sufficient to meet demand.
CNC advice to customers is to start planning well in advance for
any new IT equipment purchases. Lead times for most products are
now months rather than weeks unfortunately.
If you would like to discuss any aspect of the microchip shortage
and its impact on IT equipment purchasing, then please do get in
touch on 01273 384100 or email us at sales@cnc-ltd.co.uk
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