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Home internet router makers, including Zyxel, have reported a further downturn in their supply chains for their chips.
It comes, as broadband providers see delays of over a year in ordering internet routers, becoming yet another victim of the chip shortage that is choking global supply chains and adding challenges to millions. people who still work from home.
Carrier order times have been set at 60 weeks, more than double the previous waiting times.
This adds a new hurdle for Internet service providers when they want to add new customers to their network, resulting in lost sales in the still competitive broadband market.
A nuisance
Carsten Goeck, head of European regional activities at Taiwan-based Zexel, said their supply chains had become a nuisance as severe manufacturing shutdowns due to the coronavirus a year ago were exacerbated by a prolonged surge in demand for home broadband equipment, according to Bloomberg. And it was seen by Al-Arabiya.net.
Since January, he added, customers have had to order products in advance a year ago, as the delivery time for components such as chips from Broadcom Inc has doubled to a year or more. since then.
For its part, the American company Adtran tried to avoid the crisis by doubling its stocks and its logistics capacity to avoid problems, while increasing its share in Europe to the detriment of the Chinese company Huawei.
While internet operators are not yet short of routers, the supply chain appears to be strained over the next six months, according to Goick, who added: “We are very close to the end of many. times. “
Suez Canal crisis
“Even the cargoes already en route have not been able to escape the turmoil of world trade,” Goeck said. “Last week, Zexel’s routers were located behind the Evergiven ship that closed the Suez Canal.”
Broadcom CEO Hook Tan said last month that about 90% of its supplies for 2021 have already been ordered.
Zexel’s problems started over a year ago, when its factory in China was closed for a month due to the Covid-19 outbreak, and since it reopened supplies have been intermittent and costs have been intermittent. shipping have risen to 10 times their previous levels, as exporters race to catch up, and even compete for an A-space with medical and personal protective equipment.
Guick also noted that some manufacturers of silicon chips used in routers have increased demand for their products by more than 300% of their production capacity.
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