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The Microchip Shortage Is Not Going Away Soon, And It’s Affecting Way More Than Cars
The Microchip Shortage Is Not Going Away Soon, And It’s Affecting Way More Than Cars
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John Pallazola
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September 9, 2021
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2:32 pm
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The microchip shortage is not going away soon, and it’s affecting way more than cars
COLUMBUS, Ohio — Matthew McClellan has one piece of advice for anyone planning to buy a video game console for the holidays.
“Buy now,†he said from inside his store Forever Games. Once the holidays arrive, “you’re going to see nothing on store shelves,†he said.
A shortage of microchips and semiconductors is to blame, caused by the same supply chain issues that have hampered industries across the economy and impeded a fragile economic recovery. Much of the reporting on the shortage focuses on car companies and computer makers, but the problem is trickling down to some of the smallest businesses too such as furniture and home goods.
Microchips are so ubiquitous, most would be surprised by the amount of household items sold at mom-and-pop stores that contain them. “Printers and phones have the same problem, they all require chips,†said Jeff Taubman, who owns Downtown Computers in Downtown Columbus, which sells electronic devices and provides technical support to businesses.
Factories that produce these key components were forced to close or work at limited capacity for months at the onset of COVID, and “increased demand for consumer electronics and automotive products caused a ripple effect throughout the entire supply chain,†said Paul Hong, a distinguished professor of supply chain management at the University of Toledo.
Adding to the stress on the supply chain, manufacturers don’t want to build new factories or increase production at existing ones, worrying that they’ll incur debt and unsold product once the supply chain returns to normal. That means consumers and entrepreneurs shouldn’t expect the problem to go away. “You’re most likely going to see continued out-of-stocks through at least the end of quarter two of 2022,†said Michael Levin, a professor of marketing at Otterbein.
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Contact one of our product specialists who will quickly respond to your critical supply chain needs at 1-800-290-5066 or click the button below.
Covid Outbreak Shuts Down Taiwan Factory and Production, Causing Further Disruption for the Chip Shortage
Covid Outbreak Shuts Down Taiwan Factory and Production, Causing Further Disruption for the Chip Shortage
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John Pallazola
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June 11, 2021
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9:37 am
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A cluster of Covid-19 infections at a factory in central Taiwan temporarily stopped operations at one of the world’s largest chip-testing companies, the latest sign of potential disruption to a technology supply chain already struggling from component shortages.
King Yuan Electronics Co. shut down its main plants in Miaoli County over the weekend and reported 182 confirmed cases as of June 5, according to Taiwan’s Centers for Disease Control. Most of those are among its foreign workers, including the factory floor staff. The government placed all 2,000 of its overseas workers, around 30% of its workforce, into 14-day quarantine, and the company has turned to temporary local workers to get its production lines running again at lower-than-normal production volumes.
Taiwan’s outbreak highlights the threat posed by the global technology supply chain’s reliance on a small number of key players. Taiwan’s chipmaking industry is a crucial supplier, and potential choke point, for companies across a wide array of sectors, from consumer electronics, to server farms to the auto industry.
Companies are already dealing with a chip shortage that has slowed production and shuttered whole automaking plants, prompting the U.S. and China to explore ways to boost their own domestic production.
While manufacturing data indicate Taiwan’s technology exporters have been little affected so far, a report by IHS Markit last week warned that Taiwan experienced severe supply chain delays in May as companies built out their inventories in an effort to protect themselves against raw material shortages and surging costs.
iBuyXS Can Help You With Your Supply Chain Needs
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#Chipageddon Creates Soaring Profits For Chip Manufacturers
#Chipageddon Creates Soaring Profits For Chip Manufacturers
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John Pallazola
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June 3, 2021
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10:54 am
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Danielle Leger
January 30, 2023
7:39 am
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