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The industry faces worst chip shortage in 30 years

Now may be the time to add another domain supply issue to the list. As DigiTimes reported today, Unizyx CEO Gordon Yang said the company is suffering from its worst shortage of networking chips in 30 years, and as a result, they may have to raise prices.

Unizyx offers a variety of networking products through its Zyxel and MitraStar DMS brands. They point to their growing demand as several next-generation technologies (5G networks, Wi-Fi 6 and Wi-Fi 6E) all become more popular.

Yang told DigiTimes that Unizyx couldn’t get enough networking chips to meet that demand. Even if it were possible to get enough chips, rising component and shipping costs could lead to higher prices for Unizyx products, the report said.

This situation should sound familiar. Because global chip shortages are a focus for many companies, not just networking chips, but also the fact that shipping costs have risen due to the COVID-19 pandemic.

The coronavirus has made it harder for the shipping industry to move raw materials, components and finished goods around the world. This difficulty naturally results in increased shipping costs for…just about everyone.

That may change this year. MSI Chairman Joseph Hsu said in March that he expected shipping costs to fall as the shipping industry recovers from the pandemic, and those savings could eventually be passed on to consumers.

But for now, what Yang is describing about networking chips sounds very similar to many other sectors of the industry, covering everything from CPUs and GPUs to mobile processors and SSD controllers, and what we simply can’t cover. other components.

Unlike those issues, however, it’s unclear how much of a short-term impact the shortage of networking chips will have on consumers. It’s much harder to gauge the impact this might have on 5G wireless or the rollout of Wi-Fi 6 and 6E.