Internet service providers latest victim in ongoing global chip shortage after reports show router orders delayed by more than a year

News proves how ailing global semiconductor supply chain has pushed tech companies' backs up against the wall, an issue reported by The Guardian on March 21

A source who spoke to Bloomberg revealed that orders for routers from broadband providers had a lead time of 60 weeks, which is more than the wait time before the global chip shortage.

According to their April report 8, Taiwan-based router maker Zyxel Communications confirmed that the crisis has become a headache for their supply chains

Zyxel, responsible for European regional activity Karsten Gewecke, said the shortage was due to the prolonged surge in demand for better broadband home equipment and manufacturing shutdowns at 2020, both caused by the pandemic.

In order to reduce the problem, Zyxel had asked its customers to place orders a year in advance due to the anticipated shortage

Gewecke added that the suggestion comes after chip vendors like Broadcom Inc doubled delivery times for required components.

Broadcom CEO, Hock Tan, stated that 90% of its entire supply 2021 had already been ordered in the first trimester.

Also read: The shortage of computer chips is now at an alarmingly critical point: increase in the price of smartphones and automotive products this year

Moreover, Zyxel routers en route were also affected by the Evergreen vessel which accidentally blocked the Suez Canal

USAdtran, the manufacturer of network-based network equipment, also warned its customers of lead time extensions and supply chain risks, a company spokesperson said

After winning the European market share of Huawei Technologies, based in china, Adtran expanded its warehouses to avoid problems by doubling its inventory and logistics capacity.

White House steps in to help address issues caused by global chip shortage, Reuters reported in April 9

According to the report, near 20 large companies to send senior executives to White House summit scheduled for Monday April 12

The top, qualified for “Semiconductor and Supply Chain Resilience CEO Summit”, will include National Economic Council Director Brian Deese, Commerce Secretary Gina Raimondo and White House National Security Advisor Jake Sullivan

19 companies have agreed to send leaders to the top, dont Dell Technologies, Intel Corp., Samsung and Google-parent Alphabet

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip maker, also confirmed receiving an invitation but did not disclose further details

US automakers are also expected to attend, in particular Stellantis NV, parent company Chrysler, General Motors and Ford Motor.

“Attempting to address supply chains on a crisis-by-crisis basis creates critical national security vulnerabilities”, Sullivan said

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Router, Internet service provider, integrated circuit

News – FR – Global chip shortage results in one year delay in ISP router orders
Associated title :
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