{"id":4727,"date":"2021-10-13T10:12:34","date_gmt":"2021-10-13T15:12:34","guid":{"rendered":"https:\/\/www.stratospherenetworks.com\/blog\/?p=4727"},"modified":"2021-10-13T10:12:34","modified_gmt":"2021-10-13T15:12:34","slug":"semiconductor-chip-shortage-faq","status":"publish","type":"post","link":"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/","title":{"rendered":"Semiconductor Chip Shortage FAQ: What You Should Know"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignleft size-medium wp-image-4731\" src=\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-300x169.jpg\" alt=\"An engineer in a protective suit and gloves holds a semiconductor.\" width=\"300\" height=\"169\" srcset=\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-300x169.jpg 300w, https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-1024x576.jpg 1024w, https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-768x432.jpg 768w, https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-1536x864.jpg 1536w, https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-2048x1152.jpg 2048w, https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor-200x113.jpg 200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>They\u2019re everywhere \u2013 in our cars, laptops, tablets, and smartphones. They help us perform medical diagnostics, <a href=\"https:\/\/www.stratospherenetworks.com\/blog\/why-your-business-needs-a-secure-remote-work-strategy-to-survive\/\" target=\"_blank\" rel=\"noopener\">do our jobs remotely<\/a>, and travel by plane. Semiconductors are \u201cthe brains of modern electronics,\u201d according to the <a href=\"https:\/\/www.semiconductors.org\/semiconductors-101\/what-is-a-semiconductor\/\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">Semiconductor Industry Association<\/a>.<\/p>\n<p>Also known as integrated circuits or microchips, semiconductors have facilitated significant <a href=\"https:\/\/www.stratospherenetworks.com\/digital-transformation-advisory-services.html\" target=\"_blank\" rel=\"noopener\">technological advancement<\/a> in the past 50 years, allowing electronic devices to become tinier and faster. However, all devices that rely on semiconductor chips have recently hit a stumbling block: Those vital components are in short supply.<\/p>\n<p>You\u2019ve probably noticed headlines about the global chip shortage. If you\u2019re wondering what\u2019s going on and what it means for your business, the following information should shed some light on the situation.<\/p>\n<h2>1. Why is there a global chip shortage?<\/h2>\n<p>Numerous factors contributed to the current semiconductor scarcity, according to the <a href=\"https:\/\/www.bbc.com\/news\/business-58230388\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">BBC<\/a> and <a href=\"https:\/\/spectrum.ieee.org\/chip-shortage\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">IEEE Spectrum<\/a>. The following developments contributed to the shortage we\u2019re experiencing.<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The <a href=\"https:\/\/www.stratospherenetworks.com\/blog\/what-will-5g-mean-for-smbs\/\" target=\"_blank\" rel=\"noopener\">rise of 5G<\/a> and the growth of <a href=\"https:\/\/www.stratospherenetworks.com\/cloud-consulting-services.html\" target=\"_blank\" rel=\"noopener\">cloud computing<\/a> have led to increased demand for computer chips.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Some tech companies stockpiled chips and ordered them in advance at the start of the pandemic.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The abrupt shift to remote work led to greater demand for webcams, tablets, laptops, and other items that rely on semiconductors to function.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Many schools switched to <a href=\"https:\/\/www.stratospherenetworks.com\/blog\/back-to-school-2020-key-it-considerations-for-virtual-learning\/\" target=\"_blank\" rel=\"noopener\">virtual learning<\/a> and also needed equipment like laptops and tablets to facilitate remote education.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Due to a lack of 200mm fabrication equipment, manufacturers have had issues satisfying the growing demand for lower-cost computer chips constructed with 200mm wafers.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Lockdowns and disasters such as fires and winter storms have disrupted operations at semiconductor factories.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>During the pandemic, people quarantined in their homes have bought more home entertainment products such as TVs and gaming consoles.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>2. When will the computer chip shortage end?<\/h2>\n<p>In a nutshell, it will be over when supply catches up with demand. Computer chip manufacturers are working on expanding capacity to remedy the deficit. Still, it takes time and money (typically billions) to create new factories, Koray Kose, a senior director analyst with Gartner\u2019s Supply Chain Sourcing and Procurement team, told the BBC. Kose predicts we\u2019ll probably still be dealing with the shortage roughly a year from now (November 2022).<\/p>\n<p>Overall, it\u2019s not certain how long the semiconductor shortfall will last, but experts seem to agree it won\u2019t end any time soon. For instance, Jean-Marc Chery, CEO of STMicroelectronics, has said the situation likely won\u2019t come to an end before the first half of 2023, according to <a href=\"https:\/\/www.reuters.com\/technology\/stmicros-average-chip-prices-up-5-so-far-this-year-ceo-says-2021-07-29\/\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">Reuters<\/a>. Similarly, <a href=\"https:\/\/www.cnn.com\/2021\/07\/23\/investing\/premarket-stocks-trading\/index.html\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">CNN reported<\/a> that Intel CEO Patrick Gelsinger has predicted the shortage could drag on until mid-2023.<\/p>\n<h2>3. What does the semiconductor chip shortage mean for businesses?<\/h2>\n<p>The mismatch between supply and demand for computer chips is driving up prices for devices that need semiconductors, David Yoffie of Harvard Business School told <a href=\"https:\/\/www.popsci.com\/technology\/global-chip-shortage\/\" target=\"_blank\" rel=\"noopener nofollow\" class=\"external external_icon\">Popular Science<\/a>.<\/p>\n<p>The shortage has also led to delayed shipping. At Stratosphere Networks, we\u2019ve experienced long lead times (frequently 60 to 90 days) for various devices, including switches and laptops. So, if you think you\u2019ll need to replace any hardware or plan on hiring new staff members soon, you should place your orders now to ensure you have the necessary equipment on time.<\/p>\n<p>If you have any questions about ordering equipment for your organization, don\u2019t hesitate to reach out to our team by calling 877-599-3999 or emailing <a href=\"mailto:sales@stratospherenetworks.com\" target=\"_blank\" rel=\"noopener\">sales@stratospherenetworks.com<\/a>. Our technology advisors would be happy to assist you with all of your IT needs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>They\u2019re everywhere \u2013 in our cars, laptops, tablets, and smartphones. They help us perform medical diagnostics, do our jobs remotely, and travel by plane. Semiconductors are \u201cthe brains of modern electronics,\u201d according to the Semiconductor Industry Association. Also known as &hellip; <a href=\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\">Read more <span class=\"meta-nav\">><\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":4731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-4727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-tips-from-the-president"],"yoast_head":"<title>Why Is There a Global Computer Chip Shortage?<\/title>\n<meta name=\"description\" content=\"Numerous factors \u2013 including remote work, virtual learning, stockpiling and factory closures \u2013 led to the semiconductor chip shortage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Is There a Global Computer Chip Shortage?\" \/>\n<meta property=\"og:description\" content=\"Numerous factors \u2013 including remote work, virtual learning, stockpiling and factory closures \u2013 led to the semiconductor chip shortage.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\" \/>\n<meta property=\"og:site_name\" content=\"Stratosphere Networks IT Support Blog - Chicago IT Support Technical Support\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-13T15:12:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2309\" \/>\n\t<meta property=\"og:image:height\" content=\"1299\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kevin Rubin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kevin Rubin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\"},\"author\":{\"name\":\"Kevin Rubin\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/#\/schema\/person\/5e80dcea00878b83fb152245aa51b3f5\"},\"headline\":\"Semiconductor Chip Shortage FAQ: What You Should Know\",\"datePublished\":\"2021-10-13T15:12:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\"},\"wordCount\":585,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor.jpg\",\"articleSection\":[\"Tech Tips from the President\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\",\"url\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\",\"name\":\"Why Is There a Global Computer Chip Shortage?\",\"isPartOf\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor.jpg\",\"datePublished\":\"2021-10-13T15:12:34+00:00\",\"author\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/#\/schema\/person\/5e80dcea00878b83fb152245aa51b3f5\"},\"description\":\"Numerous factors \u2013 including remote work, virtual learning, stockpiling and factory closures \u2013 led to the semiconductor chip shortage.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#primaryimage\",\"url\":\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor.jpg\",\"contentUrl\":\"https:\/\/www.stratospherenetworks.com\/blog\/wp-content\/uploads\/2021\/10\/engineer-with-gloves-holding-semiconductor.jpg\",\"width\":2309,\"height\":1299,\"caption\":\"An engineer in a protective suit and gloves holds a semiconductor.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/semiconductor-chip-shortage-faq\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.stratospherenetworks.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Semiconductor Chip Shortage FAQ: What You Should Know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.stratospherenetworks.com\/blog\/#website\",\"url\":\"https:\/\/www.stratospherenetworks.com\/blog\/\",\"name\":\"Stratosphere Networks IT Support Blog - 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