Infrastructure Solutions

Chipset shortages causing delays?

Contact Altron Systems Integration to mitigate your ageing infrastructure risk.

Some key actions to mitigate risk and revenue:

Recover from the impact of the global chipset shortage  

IT infrastructure projects are experiencing massive delays due to a shortage of chips and semiconductors, which will persist well into next year. Altron Systems Integration is leveraging its global network to assist local companies in securing infrastructure for their needs.

Technology research and consulting company Gartner has warned that the chip supply is only likely to recover from the second quarter of 2022. It recommends that companies should extend their supply chain visibility and diversify their supplier base. Tracking leading indicators and entering companion models can also mitigate the risk.

Some key actions to mitigate risk and revenue:

Extend supply chain visibility

The chip shortage makes it essential for supply chain leaders to extend the supply chain visibility beyond the supplier to the silicon level, which will be critical in projecting supply constraints and bottlenecks and eventually, projecting when the crisis situation will improve.

Track leading indicators

While no relevant parameter by itself will project how the shortage situation will evolve, a combination of relevant parameters can help guide organisations in the right direction. Since the current chip shortage is a dynamic situation, it is essential to understand how it changes on a continuous basis. Tracking leading indicators, such as capital investments, inventory index and semiconductor industry revenue growth projections.

Diversify supplier base

Qualifying a different source of chips and/or OSAT partner will require additional work and investment, but it would go a long way in reducing risk. Additionally, creating strategic and tight relationships with distributors, resellers and traders can help with finding the small volume for urgent components.

Supply chain impact

Supply chain impact

The worsening chipset crisis shows supply chain is still at risk. As the world shut down because of the COVID-19 pandemic, many factories closed with it, making the supplies needed for chip manufacturing unavailable for months. Increased demand for consumer electronics caused shifts that rippled up the supply chain. Orders began to pile up as manufacturers struggled to create enough chips to meet the new levels of demand. A backlog began to grow, affecting almost all industries.

Even the world’s richest semiconductor manufacturers are swamped, and they’re a long way away from being able to meet demand.

Assisting South African companies to continue with planned infrastructure projects and mitigate the risk of disruption.

IT infrastructure projects are often key to a company’s future resilience and delays impact costs and revenue projections. Altron Systems Integration has secured strategic partnerships with leading technology suppliers from across the world.


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