It’s not just GPUs suffering chip shortages, there’s a year-long waiting list for routers
We’re no stranger to stock shortages plaguing the best graphics cards, latest consoles, and, to some extent, the best gaming CPUs, but chips are now so scarce that they’re affecting routers, too. Bloomberg reports that supply chains are running dry, causing broadband providers across the world to wait more than double the length of time to receive their orders.
Usually, carriers would wait up to 30 weeks for a new batch of routers to arrive, but quotes now exceed a year at 60 weeks long as manufacturers continue to suffer from 2020’s factory shutdowns. This could eventually cap the amount of new subscribers a broadband provider can accommodate, which is particularly frustrating given the elevated demand for home broadband equipment but might see a respite as global lockdowns begin to ease.
Bloomberg quoted Karsten Gewecke, head of European regional business for router vendor Zyxel Communications Corp, on the shortage. He said the situation had worsened since Chinese factories reopened last year. It’s a snowball effect that we’re pushing in front of us, and the situation since then has just become worse and worse and worse, Gewecke said, adding the company is asking ISP customers to order a year ahead to cope with the crisis. When I talk to some of the chipset vendors, some of them tell me that they have something like overbooking of 300% of their capacity.”
Making the routers is only one part of the challenge for manufacturers, Bloomberg reported. The other hurdle is getting the equipment to its destination. Shipment space is limited, and routers must compete with other products. The recent blockage of the Suez Canal by the Ever Given container ship has exacerbated the problem.
With millions depending on a stable Internet connection in order to work from home, a router shortage couldn’t come at a worse time. Bloomberg shares details provided.
11 April 2021, 9:13 am EDT By ( USA-Reiseblogger from Pixabay )
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.
MONEYWEB
app instead?
Lockdowns and huge increase in people working from home globally have exacerbated shortages.
By Thomas Seal, Takashi Mochizuki and Debby Wu, Bloomberg
10 Apr 2021 00:02
Image: Scott Eells/Bloomberg
Broadband providers are seeing delays of more than a year when ordering internet routers, becoming yet another victim of chip shortages choking global supply chains and adding challenges for millions still working from home.
Carriers have been quoted order times as long as 60 weeks, more than doubling previous waits, according to people familiar with the matter, who asked not to be named because the discussions are private.
INSIDERGOLD
Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.