The global component shortage caused by the COVID-19 pandemic is also affecting router manufacturers. Broadband providers and router manufacturers are experiencing delays of more than a year in their orders from Asian countries. Shortages of components such as the modems have caused supply to be drastically reduced, resulting in weeks-long delays.
The router industry has suffered the same as other industries, after the COVID-19 shutdown, factories in Southeast Asia simply cannot keep up with the demand for components such as chips. In addition, components are often prioritized for other products that are more profitable, such as smartphones, because of the number of units demanded or the profit per unit.
Router manufacturers are also facing a component shortage
Routers also seem to have suffered twice as much. Apart from component shortages due to pandemic-related factory closures, there is also an even greater demand from customers. This is due to the shift to working at home and having more life from home due to confinements, which has led to a demand for better home devices.
What are the consequences of this? The lack of routers can make it more difficult for operators to get new customers. A new customer usually means offering them a new device too, this is why things are more complicated than usual.
The “global chip crisis” is claiming more and more victims and causing the most interesting situations. One of the first effects we saw of this was the reduction in the production of cell phones, computers, and other consumer products.
To make matters worse, Taiwan is facing a drought that may disrupt production. As a consequence, countries like China are looking to bet on local production to avoid these situations in the future. Foxconn expects this to last at least until 2022.
