Internet providers are the latest victim of the ongoing Global Chip Shortage after reports reveal that router orders have been delayed for more than a year.
The news proves how the struggling global semiconductors supply chain pushed tech companies' backs against the wall, an issue reported by The Guardian on Mar. 21.
Global Chip Shortage: The 60-Week Delay on Router Orders
A source who spoke to Bloomberg revealed that broadband providers' router orders have been quoted with 60 weeks lead-time, which is more than the wait time prior to the global chip shortage.
According to their report on Apr. 8, Taiwan-based router-maker Zyxel Communications confirmed that the crisis had become a headache on their supply chains.
Zyxel, head of European regional business Karsten Gewecke said that the shortage is due to the prolonged surge in demand for better home broadband equipment and 2020's manufacturing shutdowns, which were both caused by the pandemic.
In an effort to curb the issue, Zyxel had asked its customers to place orders a year in advance due to the anticipated shortage.
Gewecke added that the suggestion comes after chips suppliers like Broadcom Inc. had doubled the required components' lead times.
Broadcom CEO Hock Tan said that 90% of its entire 2021 supply had already been ordered as early as the first quarter.
Additionally, Zyxel routers en route were also affected by the Evergreen ship that accidentally blocked the Suez Canal.
U.S.-based network equipment maker Adtran also warned their customers about the lead-time extensions and supply chain risks, a spokesperson to the company said.
After picking up the European market share from China-based Huawei Technologies, Adtran expanded its warehouse facilities in an effort to avoid problems by double its inventory and logistics capacity.
Addressing the Global Chip Shortage
The White House is stepping in to help address the issues caused by the global chip shortage, Reuters reported on Apr. 9.
According to the report, almost 20 major companies will send senior executives to a White House summit scheduled on Monday, Apr. 12.
The summit billed as the "CEO Summit on Semiconductor and Supply Chain Resilience," 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 executives to the summit, including Dell Technologies, Intel Corp, Samsung, and Google-parent Alphabet.
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip manufacturer, also confirmed to have received an invitation but did not disclose any more details.
U.S. automakers are also expected to attend, including Chrysler-parent Stellantis NV, General Motors, and Ford Motor.
"Trying to address supply chains on a crisis-by-crisis basis creates critical national security vulnerabilities," said Sullivan.
Related Article: Apple Postpones iPad and MacBook Production Over Global Chip Shortage
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Written by Lee Mercado
