It is not a secret that a serious imbalance between supply and demand exists right now for industrial computing hardware products. But the key reason for that is the shortage and pricing increasing of the IC chips. The IC chips shortage now has greatly impacted industrial computers companies. What’s worse, nobody can forecast when it will recover.
The causes of IC shortages are varied: fires, floods, market factors, and COVID-19 shutting down manufacturing facilities. There are also shortages of shipping containers and air-flight to deliver goods. The mainboard and computers are in short supply due to shortages of audio chips, CPUs, memory, storage, ethernet chips, and various other components. The situation has impacted component cost and deliveries, leaving many manufacturers to deal with longer lead-time, higher cost and delayed projects. This situation will not stay forever, of course, but what can we do at the very time?
At the moment, the single cost of IC chips has increased from 40 percent to even 1000 percent, which makes every purchaser to be crazy. Another point, its delivery times are very long, up to 4 ~ 12 weeks. If there are no enough inventory and timely activities, mainboards delivery time might be longer beyond 10 weeks in some cases. With this shortage, manufactures must have a creative and positive strategy, to keep stable supply and price system as we can.
At TAICENN, we are taking positive steps to buffer the impact of the shortage on our partners and customers. Our strategy is to stock key components inventory with our greatest efforts. Our goal to cover 85% ~90% hot selling models in our sales. The strategy is able to increase the materials usage rate. Of course, our strategy cannot success without scientific management and the support from our supply chain. We are also getting the understanding and support from our partners. We tightly contacted and worked with them to do forecasts and schedules so that we can ensure their project supply.
There are no easy ways out of this situation. But TAICENN hope you to know that we are doing everything we can support our partner’s supply. To keep stability and flexibly support is our core value to customers. It is not only the product quality, but also the supply, price, support. We will continue to do everything we can to reduce the impact of shortages. Trust us and let us support you.
