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The Global Microchip Shortage Is #GettinReal

Karen Lamb once wrote: A year from now you may wish you had started today. You can apply that to so many things in life, and in a nutshell, it essentially means the same thing as an even better-known phrase: Sooner, rather than later.

On that note, if you have any projects that require any sort of electronic or computing equipment between now and Christmas 2021, the end of June 2021 was the best time to sign off on the project.

I say that with my tongue in my cheek, but seriously, due to the global shortage of semiconductors, the sooner you can put your finger on the necessary equipment, the better.

I am celebrating my 7-year work anniversary this week here at datmedia. I love working in the technology sector and helping organisations innovate and improve everything from operations to customer experience. However, it just occurred to me this week after speaking to several clients, that not everyone is aware of the current supply chain constraints and the impact on projects worldwide.

From the automotive industry to start-ups that make contactless ordering possible at your local cafe, every industry is being affected by this unprecedented global shortage. Semiconductors are an essential component of electronic devices. They are found in everything from cars and factory machinery to dishwashers and mobile phones. Essentially these tiny silicon microchips are used to control the electric current flowing into devices.

The global shortage is due to a perfect storm of supply and demand conditions. 2020’s COVID-19 lockdowns in China, along with a coinciding raw material shortage, triggered international supply disruptions. Simultaneously, the instant global demand for devices needed to work from home skyrocketed.

To make things worse, as it turns out, panic buying isn’t restricted to toilet paper shelves at the supermarket. Manufacturing companies that use semiconductors have started stockpiling whatever they can get their hands on. Unfortunately, this only further restricts supply and contributes to an increase in costs.

Last year many businesses had to pivot and change the way that they operate. The global microchip shortage is #GettinReal now and it is forcing companies to drastically extend the necessary lead time for required equipment supply.

Bottom line – It’s real! If the project is going ahead and equipment has been decided on, don’t wait. Order the devices as soon as possible to ensure that all necessary equipment is available within the project timelines. If there is any scale involved, add an extra tablespoon of urgency. We are genuinely recommending placing orders now for anything that needs to be installed by Christmas 2021.

As always, we are here to help. If you have questions that need to be answered to help with important decisions about a project, please don’t hesitate to get in contact. We have specialists that can help with procurement, software development, installation challenges, content & media and most importantly, project management.

Here are some articles about the global microchip shortage and what it means for business:

As Anthony Robbins says: The path to success is to take massive, determined action. Thanks for reading and sharing.