The Conundrum of the Chip Supply-Chain
- Posted by Makayla Shaffer
- On June 10, 2022
- 0 Comments
During the COVID-19 outbreak, life changed a lot, and the IT world was no exception. Everyone started moving work online to keep their businesses running. While the rest of the world is slowly getting back to normal, the IT world is still having some issues. The COVID-19 outbreak also brought on a supply-chain shortage of semiconductor chips. What is a semiconductor chip? A semiconductor is a chip made of a material that conducts electricity but is more insulated than a full conductor. These chips are a vital part of your everyday electronics. Overall there are four different types: Memory, Microprocessors, Commodity Integrated circuits, and complex SOC.
With the sudden appearance of COVID-19, the plants that helped create these chips were forced to shut down. Ever since the pandemic, the lead time for these components have doubled from the norms. Although the production has increased slightly, it will take some time for the normal production to recover and may not subside until 2024. The Semiconductor Industry Association (SIA) announced that the semiconductor companies are putting a lot of money into a full recovery of the supply-chain. Meanwhile, the production companies are experiencing large backlogs and higher costs.
So how does this effect you and how can you get what you need? If you need equipment with one of these chips in a short amount of time, you could consider purchasing used network equipment or data hardware. There is a lot of used current and previous-generation technology that is able to be purchased and used immediately. This would allow you to get the equipment you need without the hassle of waiting for a new chip. Finding quality used equipment is something we can help you with! Just give us a call and we can start the process!