Broadband providers are facing delays of more than a year when ordering Internet routers. This is due to the lack of chip which is affecting the global supply chain. Due to this, it is difficult for those working from home. According to people familiar with the case, people have been given more than 60 weeks to deliver, which is double the time of the previous weight. Taiwan-based router manufacturer Zxx Communications Corp. Carsten Gavke, head of European regional business in the US, said demand for home broadband devices increased due to the lockdown caused by coronavirus a year ago.
He said that since January, the company had asked customers to order products a year earlier as the lead time for components such as chip from Broadcom Inc. has doubled since then. Zyxel is a main supplier of routers, including customers with Telenor ASA in Norway and Zen Internet in the UK. American network equipment maker Adrran, which is gaining market share in Europe from China’s Huawei Technologies, has also warned customers of supply chain risk and lead-time extensions in recent months.
A spokesperson said via email that Adron has expanded its warehouse facilities in the UK to double its inventory and logistics capacity to avoid problems. At the moment no carrier has reached a complete router shortage, but the supply chain is expected to persist for the next six months. According to Gweck, the problem of scarcity may be revealed soon. Even pre-arranged shipments cannot survive the constraints of global trade. However, Broadcom did not immediately respond to a request for comment. Zyxel CEO Hawk Tan said last month that 90 percent of the 2021 supply had already been ordered.
Zyxel’s problems began a year ago when its Wuxi, a sugar factory, was closed for a month due to the Kovid-19. As it reopened, supplies plummeted and shipping costs incurred losses up to 10 times their previous levels as exporters required outbound medical and personal protective equipment. As sugar mills have reopened, chipsets have become a global problem, with supply-demand mismatches coupled with silicon wafers. Some carriers also stock up to avoid shortages.