Tuesday, November 29, 2022

Three Ways to Navigate the Chip Shortage

By Vishal Muktewar - May 27, 2022 3 mins read

Semiconductor chips, which have been in low supply in recent years, have become even more difficult to build due to the ongoing global crisis. Therefore, industry experts recommend IT organizations extend the life of their current IT equipment, consider cloud alternatives and more to navigate the chip shortage.

The shortage of semiconductors has been a problematic topic for industries across the globe. The pandemic further exacerbated the issue that had a drastic impact on the supply chains, and then, network vendors. Automobile industries have been facing issues as some organizations have had to temporarily halt their operations due to the lack of semiconductor chips.

The demand for semiconductors is nearing its peak. In fact, as per a report from the US Department of Commerce titled “Semiconductor Supply Chain report,” the demand for the shortage was 17% higher in 2021 than two years before. Not only that, the ongoing political climate makes the situation even worse due to the negative impact on the supply chains. Dealing with this shortage requires the IT industry to consider self-sufficient, local semiconductors. While adopting this solution can help alleviate the scarcity and decrease shipping delays, it may take a few years to implement such a system. Until then, organizations can should incorporate the below-mentioned ways to navigate the chip shortage:

Planning Ahead

The most effective way to navigate the uncertainty of chip shortages is by planning ahead. This can help to address the challenges such as backlogs in the future. Also, making orders before their immediate requirements will enable organizations to get the technology they require without compromising or troubleshooting a long-term delay. This approach is different for most organizations and individual customers as many are used to ‘just-in-time’ technology buying habits.

Organizations should also take time to analyze whether they should acquire new technology as part of their ongoing hardware lifecycle management to support their project growth or to have inventory on hand to replace non-functioning equipment.

Also Read: Worldwide Global Chip Shortage to Persist Until H1 of 2022

Build depending on availability 

Most engineers, especially those working in the electronics industry and telecom, find it challenging to get the required components due to semiconductor chips. This results in delaying their production schedules and leads to higher prices. Therefore, organizations should design pieces around their availability instead of their preference. They should build to have flexibility or have back designs ready if the emerging supply chain issues hampered their preferred strategies. Having modular and flexible architecture in place allows organizations to seamlessly tackle supply uncertainty while meeting their near- and long-term business goals.

Collaborate with the Right Partner 

The issues emerging from the semiconductor supply chain are too big and complex for one organization or government to solve. Hence, organizations should seek out partners that can ensure they are always in the best possible situation. They should make an alliance with an entity that is familiar with the ins and outs of the industry and can provide advice on how to navigate the uncertainty.

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AUTHOR

Vishal Muktewar

Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.

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