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World Chip Shortage

You may have heard, but there is a world shortage of integrated circuits at the moment. A combination of Covid factory closures, a recent drop in demand, and a nasty fire in a fabrication factory have left the automotive industry starved of the chips they need.

You may not think that really affects me or you, but you'd be wrong. The IC world is now struggling to catch up with demand. And that means that most of the fabrication plants are working flat out to create the chips that the automotive industry (and similar large industries) needs. And that comes at the expense of us smaller customers that want other chips.

You see, as existing stocks of other chips start to run out there's now no capacity in the factories to make more. We have to wait until they've stopped making automotive chips in such large numbers before we get our chips.

We're seeing lead times of about a year on some chips, which is somewhat impacting to the business - we can't get the chips, we can't make our products, we can't sell our products, we can't pay our bills.

But fortunately as a small company we're far more flexible than someone like JLR, who have just announced temporary factory closures until they can get their chips. We have the ability to adapt and survive. So for the next few weeks we are undergoing a major program of redesigning all our products to use components that we can get hold of (at least for the time being).

So please be patient as we work through these trying times.

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