Global Semiconductor Shortage
Global Semiconductor Shortage
COVID-19 has been a challenge for us all, and now we are faced with yet another fallout of the pandemic, that being a global shortage of semiconductors. There are 2 main causes of the shortage;
- An increase demand in consumer electronics as people were forced into home lockdowns.
- Semiconductor factories not being able to run at full capacity.
This week, Qualcomm Inc.’s Cristiano Amon, head of the world’s largest mobile chipmaker, flagged shortages “across the board,” citing the industry’s reliance on just a handful of players in Asia.
To make matters even worse, there are also shipping delays. To put it simply, there just isn’t sufficient sea freight containers to carry freight around the globe. Particularly when airfreight capacity is at an all time low due to the scarcity of international passenger flights.
We are proactive in our approach to these problems. We have increased our level of stock holding and have reverted to air freight as much as possible. With that being said, we are also taking the approach of notifying you that there may be stock shortages and the best approach would be to talk to our sales team and place orders early so that we don’t hold up your projects.
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