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Global chip shortages: how to avoid time delays

According to industry leaders, the global semiconductor chip shortage situation is going from bad to worse. If you’re in the telecoms industry and experiencing lead time delays due to this, we understand how frustrating it must be. Fortunately, we have a solution for you.   

Why is there a shortage of microchips?

The coronavirus pandemic saw lots of businesses, including those in the semiconductor industry, become heavily disrupted due to a fall in demand. In many cases microchip production ground to a halt, resulting in a smaller supply of chips than usual.  

Although the demand is now on the rise again, the chip production industry has been slow to bounce back given that restarting production isn’t as easy as flipping a switch.  

To escalate matters, a new surge in demand driven by changing consumer habits means that supply chains are now reaching crisis point. For it’s not just the telecom industry that is affected by the chip shortage. Everything from cars to gaming consoles to mobile phones, TVs and fridge-freezers call for these precious semiconductor chips that are in short supply.  

What telecoms equipment is affected?

It’s fair to say, we don't currently know the exact extent of the telecom equipment affected by the shortage of microchips. However, we are seeing customers from all over the world struggle with the long lead times being quoted by many of the leading OEMs.  

Because so many companies are worried about time delays, more and more instances of stock piling are arising, which is limiting the availability of microchips and making sourcing telecom products even harder. 

How to avoid long lead times 

Second-user telecom network equipment

Here at TXO, thanks to our expert product sourcing team and global warehouses (which currently hold over 1 million parts in stock), we can supply the equipment you need from the green market. This means that if we have the parts in stock, the lead time is zero. If not, it is more than likely that we can source the equipment you need from our network of partners across the world much faster than the OEM lead time for supplying new hardware. So not only will you be saving time and money, but you’ll also be creating a greener, more sustainable network.  

We can provide fully functioning, fully assembled boards and units immediately. And even better, all can be sold with testing for functionality and a 12-month warranty.   

Internal reuse

In addition to product supply, where possible we encourage our asset recovery customers to reuse their hardware as it's the greenest possible way. We understand that you might not know exactly what spare parts you have, and you may have what you need right under your nose! Our team can help give you the answers with our identification services. Internal reuse is hugely beneficial, particularly in situations like the chip shortage, where equipment is needed ASAP.  

If you have stock holding with us, you can view your stock list by logging into our i-TRAC asset management portal. If the item you need is stored, it can be called back with the click of a mouse and dispatched from our warehouse the same day. Reuse is also one of the key principles of the circular economy and it’s often the first step that an organisation can take towards a more sustainable way of working. 

So, don't let long lead times stop you from maintaining your network. Get in touch with our team with your requirements today, we'd love to help you.   

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