Global Computer Chip Shortages

April 7, 2021

SIRKit is sending out this communication to advise our clients about a severe global computer chip shortage that is now directly impacting product availability. If you require new PCs, Servers, or electronics in general, delivery times are impacted. You should expect delays of up to 12+ weeks on certain products.

Silicon chips are used in many different products, including computers, smart home devices, wireless gadgets, and gaming devices. We have summed up a few of the key points about this shortage so that you can stay informed.

What’s causing the global chip shortage?

  • Pandemic-related work delays.
    • As the pandemic continues to transform the way we work, production for many key components required for silicon chip manufacturing has been delayed. Some factories have had to halt or greatly reduce production to comply with local regulations.
  • Increased demand as everyone continues to work from home.
    • With more people working from home (WFH), more electronic equipment is needed than ever before. This leads to increased demand for WFH equipment, many of which use silicon chips. Many products are back ordered because of this.
  • Logistical problems.
    • As the world moves to comply with safety regulations, delivery companies such as DHL and FedEx have been experiencing significant delays. There have also been several logistical problems over the last few months, which have led to shipping and delivery delays.

What products are affected?

  • Servers, infrastructure, and telecommunications equipment
  • Computers, smartphones, and computer accessories
  • Game consoles and PC gaming equipment
  • Smart home devices
  • TVs, speakers, and audio equipment
  • Headphones

Are we still able to buy the affected devices?

  • Yes, absolutely; however, most devices will be delayed as we await arrival. As mentioned, there is a 12+ week delay on certain laptops, desktops, and other equipment.

How SIRKit can help

SIRKit generally maintains a reasonable inventory of common products purchased by our clients to cover demand for several months. However, the shortage has reduced our inventory to minimal levels. To ensure we get product in as quickly as possible, we have pre-ordered 4X our typical inventory volume from the 4 largest distributors in Canada. We are at the front-of-the-line to begin receiving products in the next 3-4 weeks. Some will require 12+ weeks. We do have some stock left; if you require anything, please contact us immediately to confirm availability.

It’s unclear how long the world will be impacted by this shortage and what the true ETAs are. Give us a call to get more information if you’re in the market for any new equipment. SIRKit will be offering backorders on a first-come-first-serve basis.

For more information on the silicon chip shortage, here’s an article from the New York Times.