Tiny Titans | Why the Mighty Microchip Is Vulnerable to Disruption

Reading Time: 10 Min.

Due to potential supply chain failure points, businesses worried about time and complexity are at particular risk. For an integrator, this fragility is further highlighted on two fronts: the import of microchips for integration and the export of integrated hardware for deployment to clients around the world. With high innovation in the global semiconductor chip and microchip supply chain, the delicate equilibrium between supply and demand rests precariously within the web of the worldwide supply chain.

To safeguard your supply chain, opt for strategic warehousing around the world for integration and deployment to Data Centers (DC), Point of Presence (PoP), or Beneficial Owner (BO) destinations. This will safeguard your supply network and ensure you are not caught in the throes of a chip shortage.

A single earthquake in Taiwan in 1999 shut down a major science park for just six days. This caused semiconductor chip prices to triple, and major electronics companies saw stock prices plummet in just a month!

Post-COVID-19, there was an unprecedented global shortage of essential microchips. However, analysts grappled with where the shortages stemmed from. As it played out, it was highlighted that the incredibly nuanced manufacturing and supply process has multiple failure points. These have and continue to have a severe cascading effect on the global supply of semiconductor chips and microchips.

Worried about chip shortages or supply shortages stalling your projects? Our in-depth supply chain expertise helps integrators stay ahead of the curve.