Semiconductor Chip Shortages Causing Worldwide Supply Chain Delays
From cell phone producers to automotive manufacturers, and everything in between, the electronics industry is facing an unparalleled shortage of chips.
Laptop on back order? New phone model release delayed by two months? Unclear delivery window for office desktops? The global chip shortage is to blame.
We’ve gathered some resources below that explain the shortage—and how we got here—in detail.
What is a chip and why does it matter?
Microchips are small electronic devices consisting of integrated circuits laid out on a thin wafer of semiconductor material (typically silicon). These chips are at the heart of practically every electronic device used today. This includes computers, cell phones, appliances, televisions, GPS trackers, and credit cards among countless other devices.
What has caused this chip shortage?
There are several factors at play here. Shortages in labor caused by COVID-19 combined with political tensions and an untimely demand cycle have resulted in what many are referring to as the “perfect storm”.
Is the answer as simple as just producing more chips?
Unfortunately, no. It costs billions of dollars and many years to build out a production facility due to the complex nature of chip manufacturing. On top of that, competitive pressures in the chip manufacturing market are forcing out all but the finest (and most cost-effective) manufacturers.
How does this affect me?
IRIS is committed to fulfilling orders as quickly as possible. We are working with our suppliers to ensure we are able to provide our clients with the products you need, when you need them. That being said, we may occasionally run into some delivery delays. Rest assured we will set clear expectations during the ordering process and will of course keep you updated with shipping developments. In an effort to get products into your hands as soon as possible, we may have to revert back to the quote approver with equivalent, but suitable, alternative products should product availability become scarce after quote approval.