The global shortage of chips leads to the product supply chain in various fields in trouble. Now, when ordering Internet routers, broadband service providers find that the delivery time of products is even delayed for more than a year, which makes the industry another victim of chip shortage and brings more difficulties to millions of people who are still working at home.
According to people familiar with the matter, the delivery time of router orders from broadband service operators is as long as 60 weeks, which is more than twice the waiting time before.
Heqin technology is a major router supplier in the world. Its customers include Telenor ASA in Norway and Zen Internet in the UK.
Adtran, an American network equipment manufacturer, has also warned customers of supply chain risks and delivery delays in recent months. A spokesman for the company said in an email that the company had expanded its warehouse facilities in the UK and more than doubled its inventory and logistics capacity to avoid product shortages.
Even the goods already in transit are facing various problems. According to gwick, the freighter that ran aground on the Suez Canal last week was full of Heqin technology routers.
Broadcom did not immediately respond to requests for comment. Chen Fuyang, the company's chief executive, said last month that 90% of its products had been ordered in 2021.
Gewick said that the current shortage of silicon wafers and the chip supply problem caused by the mismatch between supply and demand have become the bottleneck of the global supply chain. Gwick added that memory and power management components were also affected.
As Fabs struggle to allocate limited capacity, less profitable businesses are pushed behind. Routers are often less profitable than smartphones and computers. In addition, some less affluent router markets such as Eastern Europe use components with low precision and low profit margins. Similarly, the smaller broadband service operators are the hardest hit, while the world's major enterprises are competing for product supply relying on their purchasing power.
It is reported that some operators have reserved equipment to avoid shortage. Some companies are further insulated by ordering equipment that can be consumed for months before the possible trade disruption caused by brexit.