The worldwide chip scarcity is worsening, with businesses reliant on new chips experiencing manufacturing and supply delays of more than a year, and in extreme circumstances, until 2024. The worldwide semiconductor shortage has led to numerous discrepancies for numerous firms throughout the world, with sluggish chip supply affecting suppliers’ ability to build goods and fulfill orders. Companies that are experiencing delays extend, expect them to continue further into the foreseeable future as the situation worsens. In the example of utility monitoring business PowerX, a purchase of chips made in May was first scheduled to be delivered by the summer, although this timeline was subsequently pushed back to autumn, then winter, and are now slated to arrive in May 2022.
PowerX is not alone in this; Princeps Electronics operations director Ian Walker stated that some new customer purchases had a delivery schedule of 2024. According to Susquehanna Financial Group, chip waiting lists increased from 9 to 12 weeks in the summertime to 19 weeks in the fall, climbing up to 22 weeks in October. In other circumstances, for power management equipment applications, it takes an average of 25 weeks, whereas microcontrollers utilized in the automotive sector might take up to 38 weeks. Apple, likewise, is hit by supply chain concerns, warning throughout its quarterly earnings that faults in “legacy nodes,” notably modems and power controllers, are the corporation’s major point of concern.
This scarcity is caused owing to a variety of factors, including the shutdown of facilities due to COVID-19, limited availability of substrates and other basic ingredients, as well as pauses in wafer manufacture. Global transportation concerns exacerbated the dilemma, since chips may travel up to 25,000 kilometers before becoming final goods. While the supply chain for chips is one component, chip purchasing habits are another, with over-ordering and hoarding leading to shortages. According to Harvard Business School professor Willy Shih, “consumers are choosing a lot of components just in case,” which is compounding the scarcity. Chip manufacturers have announced intentions to invest in new facilities to boost output.
