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February 25, 2022
The chip shortage is expected to last a few more years, but that doesn’t mean your company has to wait it out or slim down production. Telink can keep your business running — here’s how.
The semiconductor chip shortage continues to cause major bottlenecks for a variety of industries around the world — most notably the automotive, medical, and IoT sectors. As production plants and vendors scramble to adjust to skyrocketing demands with scarce supplies, consumers are left waiting months and even years for products they could once acquire within a few days.
The IC market is no stranger to wild fluctuations in consumer demand, but production forecasts and possible solutions to the shortage have been complicated by a rolling deadline to this crisis. As of now, experts believe the shortage will last until 2023 or even longer. In the meantime, Telink has maintained and distributed a steady supply of IC chips to manufacturers, allowing them to meet consumer expectations as industry leaders work toward a long-term solution.
When the pandemic first hit two years ago, strict quarantine protocols demanded a work-from-home environment that caused consumer demand for electronic goods to soar. Manufacturers weren’t equipped for this sudden rise in demand, especially as shutdowns disrupted their production.
According to a 2021 report by the U.S. Department of Commerce, the median inventory for semiconductor chips in 2021 spanned just five days, as opposed to 40 days in 2019. Consumer demand, on the other hand, rose by 17 percent within the same period.
The report also notes that limited wafer production has been the most common cause of concern. According to one silicon wafer supplier, Sumco, the shortage may last longer than even the most dire predictions. The company claims its 300 mm wafer capacity is already booked through 2026.
The IC capacity shortage has hit hard for downstream manufacturers, who are experiencing unacceptably long lead times, insufficient and unstable supply for meeting market demand, and significant component price increases from their existing IC suppliers. Facing these challenges, manufacturers are finding ways to creatively utilize available resources at a cost advantage — and that often means forming new partnerships.
Currently, companies like Taiwan Semiconductor Manufacturing Co. (TSMC), Intel, and Samsung are investing billions of dollars into new factories, materials, and employees to surge IC production, but it will take at least a couple of years before these plans become a reality.
For manufacturers, the quickest way to address shortage-related bottlenecks is to expand your sourcing network to IC vendors carrying products that promise high-quality performance at an affordable cost. These vendors should also have a proven shipping history and stable market position to ensure that they consistently align with your production quotas.
Telink is an ideal choice if you’re looking for a reliable IC supply at a competitive price. Here’s why:
Most importantly, Telink has strong partnerships with world-class IC manufacturing companies with access to a steady supply of the key components your business may be missing, at an affordable lead time and price.
Just because there’s a shortage, it doesn’t mean your business has to go under. Trust Telink to supply you with the chips you need to create the products your customers rely on. Our SoCs provide the end-to-end visibility and unparalleled connectivity that will not only work seamlessly with your devices, but elevate their functional capabilities. We have capacity in place to support many new customers and our aim is to become a long-term partner to you. We hope that by offering best-in-class availability, combined with reasonable pricing and excellent performance, you will grow your partnership with Telink not just in the short term but also for many years to come.
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