Since the birth of the humble transistor in 1948, the semiconductor has grown to power the world we live in today.
Found in thousands of products, semiconductors are a critical component in car manufacturing, smartphones, PC's and a variety of other widely used electrical products such as gaming consoles, appliances, and even medical equipment.
With widespread use across a multitude of industries, industry experts now warn that severe shortages of semiconductors will be experienced as the supply chain begins its recovery from the impact of the COVID-19 pandemic.
But what does all this mean? And what impact will the global shortage of semiconductors have on your business?
Let's take a look below.
The global semiconductor shortage situation
The shortage of semiconductors has been driven by the incredible demand last year for laptops, PC's, Smart TV's and other electronics as millions of people worldwide shifted to working from home (and staying at home) as a result of the COVID-19 pandemic.
In addition to the increased demand for these goods, two of the largest producers of these chips (China and Taiwan) were shut down in response to the pandemic, increasing the strain on the already struggling supply chain.
While there is no certainty of how long the chip shortage is set to last, it is speculated that the semiconductor supply chain will be affected through to 2022.
How could this affect my business?
Put simply, the shortage of semiconductor chips means that the electronics industry could soon be unable to meet consumer demand. Technology suppliers are experiencing increasing strain on stock levels, with production and manufacturing of many major products pushing out by months.
With the shortage of stock affecting all technology supplies, your technology provider may not be able to provide immediate replacement if your hardware fails or you need new equipment.
This means that the next time your business needs a laptop for a new employee, or your switch fails, you may in fact be unable to source it for months to come.
What can I do to prepare for any shortages?
As a general guide, we typically recommend that Diamond IT customers have a spare of all critical equipment (such as a spare laptop/PC/switch) on hand.
We strongly recommend speaking with your technology provider (or for Diamond IT customers, your Business Technology Manager) as soon as possible to place an order for any ageing equipment or planned new starters. While stock shortages are already impacting the market, we recommend 'taking your place in the queue' as soon as possible.
To discuss any concerns contact us today on 1300 307 907.
