The global processor shortage It is one of those situations that few could have imagined as an effect of the pandemic last year. Now we are seeing its effects with multiple technology sectors affected by the lack of components. The last? The router manufacturers and, consequently, the operators.
As reflected by Bloomberg, broadband providers and router manufacturers are experiencing delays of more than a year in their orders from Asian countries. The lack of components such as modems that make up the router have caused the supply to be drastically reduced, thus causing delays of weeks and weeks.
The router industry has suffered the same as the other industries: after the COVID-19 stoppage, factories in Southeast Asia simply They cannot cope to meet the demand again of components such as chips. Likewise, components are often prioritized for other products that are more profitable, such as smartphones, due to the number of units demanded or the profit per unit.
The routers also seem to have suffered twice as much. Aside from component shortages due to factory closures due to the pandemic, there is also even greater demand from customers. This is due to the change to work at home and have more life from home due to confinements, which has caused a demand for better home routers.
What consequences does this have? The absence of routers can make it more difficult for operators to get new customers. A new customer generally means offering you a new router and without their availability things are more complicated than usual.
Chip shortages in all types of industries
The “global chip crisis” more and more victims are being gained and causing the most curious situations. One of the first effects we saw from this was a reduction in the production of mobiles, computers and other consumer products. After that, and where it is most noticeable, the crisis reached the automobile industry. It is something that Qualcomm or Nvidia has also noticed.
To make matters worse, Taiwan is facing a drought that can disrupt production, and in Japan a few fires have already done so. As a consequence, countries like China seek to bet on local production to avoid these situations in the future. Mind you, Foxconn expects this to last until at least 2022.
Via | Bloomberg