{"id":55806,"date":"2021-08-17T11:29:00","date_gmt":"2021-08-17T15:29:00","guid":{"rendered":"https:\/\/insi.net\/?p=55806"},"modified":"2021-08-17T11:29:00","modified_gmt":"2021-08-17T15:29:00","slug":"top-it-support-company-discusses-microchip-shortage-marietta-atlanta","status":"publish","type":"post","link":"https:\/\/insi.net\/top-it-support-provider\/top-it-support-company-discusses-microchip-shortage-marietta-atlanta\/","title":{"rendered":"Top IT support company discusses the microchip shortage in Marietta and Atlanta"},"content":{"rendered":"

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The best Managed Service Provider in Marietta and greater Atlanta GA, predicts the microchip shortage will continue through 2023.\u00a0<\/p>\n

Most common manufactured goods use microchips<\/strong><\/h2>\n

The microchip shortage has created a catastrophic supply chain deficit across various manufacturing sectors. Manufacturers affected include smart appliances, office equipment, TVs, smartphones, PCs, MACs, tablets, iPads, servers, electronic toys, and basically, anything with a plug or battery has a chip, including your top IT support company.<\/p>\n

However, the most affected are the automotive manufacturing industry and dealers. Automotive manufacturers rely upon hundreds of OEM part manufacturers to make a single car which makes up two-thirds of the production line. These smaller suppliers often don\u2019t have the financial pull to compete for low-supply\/high-in-demand microchips. As a result, transportation has taken a huge hit, especially in overpopulated cities like Atlanta.<\/p>\n

Reasons for microchip shortage <\/strong><\/h3>\n

The microchip shortage was the perfect storm created by the pandemic. The combination of workforce shortage, high demand for electronics, lack of suppliers, trade war, and a significant microchip plant fire led to the most considerable microchip shortage in history.<\/p>\n

Covid shutdowns<\/strong><\/h3>\n

Covid was the first of many factors that caused the microchip shortage. In addition to worker illness and lockdowns, many industries predicted reduced sales and halted purchasing. While automobile parts manufacturers stopped purchasing, computer manufacturers increased their purchases. Then the automobile industry increased their demand when 0% financing and discounts led to massive sales. The combination halted manufacturing production, and the microchip suppliers can\u2019t keep up with current demand.<\/p>\n

Microchip surge<\/strong><\/h3>\n

In 2020, more people worked from home than ever before.\u00a0 As a result, their dependency on electronics surged. The top 10 purchasers of microchips were electronic computer companies. For example, Apple and Samsung Electronics were the largest buyers of microchips in 2020. Apple purchased $53.6 billion in microchips, accounting for 11.9% of the global market, while Samsung Electronics spent $36.4 billion. This surge depleted inventory and left manufacturers across the globe scrambling. (Source: Gartner February 2021)<\/p>\n

Microchip monopoly<\/strong><\/h3>\n

Asia has a monopoly on microchips with 75% of the world-wide market share. The United States only produces 12% of semiconductor manufacturing. The reliance on Asia for new electronic components puts global manufacturing at a considerable disadvantage.\u00a0<\/p>\n

China trade war<\/strong><\/h3>\n

In 2020, the US placed restrictions on China\u2019s biggest chip manufacturer, Semiconductor Manufacturer International Corporation (SMIC). As a result, the trade restrictions made it hard for American companies to buy microchips. Because of this, they turned to Taiwan Semiconductor Manufacturing Limited (TSML) and Samsung, already at manufacturing capacity.\u00a0<\/p>\n

2021 Taiwan drought<\/strong><\/h3>\n

Not only was the TSML overwhelmed with orders from the China Trade War, and experienced the worst drought in more than half a century. Since they require large amounts of ultra-pure water during the manufacturing process (63,000 gallons a day), they could not keep up with demand.\u00a0<\/p>\n

Japan plant fire<\/strong><\/h3>\n

Renesas, a microchip manufacturer in Tokyo, Japan, supplies 30% of the global market for microcontroller chips used in cars.\u00a0 On March 19, 2021, a plant fire halted manufacturing and exasperated the already existing microchip shortage. As of now, Renesas expects a full recovery of shipments in mid-August.<\/p>\n

Summary<\/strong><\/h4>\n

The microchip shortage is possibly the worst disaster to affect the production of electronics in history.\u00a0 Unfortunately, it is likely not going to be over anytime soon.\u00a0 Experts predict conditions will not improve anytime soon. Likewise, it will worsen if there is a China-Taiwan conflict since Taiwan produces 70% of the microchips globally.\u00a0<\/p>\n

Top IT support company in Atlanta and Marietta<\/strong><\/h4>\n

I<\/strong>NSI keeps clients informed on market conditions and IT support industry news that impacts them the most.\u00a0 If you would like to have a top IT support company that keeps you informed, contact us at 770-387-2424 option 2 to speak with one of our IT support consultants.<\/p>\n

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About the Author<\/h2>\n

Deborah Frazier<\/a>\u00a0is the author of\u00a0IT Outsourcing Secrets \u2013 A Small Business Guide to Compare IT Support Companies.<\/strong><\/em> With nearly 20 years of experience consulting small and medium-sized businesses on their IT support needs, she brings a wealth of knowledge to INSI as Head of Marketing and Sales. If you like this article and would like to get notified when a new article is posted, click here<\/a>.<\/p>\n

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The best Managed Service Provider in Marietta and greater Atlanta GA, predicts the microchip shortage will continue through 2023.\u00a0 Most common manufactured goods use microchips The microchip shortage has created a catastrophic supply chain deficit across various manufacturing sectors. Manufacturers affected include smart appliances, office equipment, TVs, smartphones, PCs, MACs, tablets, iPads, servers, electronic toys, […]<\/p>\n","protected":false},"author":3,"featured_media":55809,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"

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Fully managed IT services can be a great solution for your Marietta or Atlanta based company. This IT service solution could be a stand-alone service or a work side-by-side with your current onsite IT professional. Options include everything from ticket resolution, vender management, procurement, to strategic direction.<\/p>

Stand-alone IT services<\/strong><\/h2>

For stand-alone IT services, make sure you are getting a Managed Services Agreement from a reputable IT company. A base program should include items such as monitoring, access to engineering contacts, preventative maintenance, asset tracking, vendor management, and a knowledge of your company\u2019s IT history and future strategies and goals.<\/p>

Side-by-side IT Services<\/strong><\/h2>

Some mid to large sized companies already have their own IT services. Having your own IT department does not mean that their time is being spent wisely. Trained engineers should not be spending excessive times on support calls. It may benefit your company to outsource some of your engineers\u2019 responsibilities to they can spend more time on other more important tasks. Also, senior engineers should not be focusing on the same tasks as junior engineers.<\/p>

Atlanta fully managed IT services<\/strong><\/h2>

Innovative Network Systems, Inc. (INSI) offers fully managed IT services to any type industry including: healthcare, financial services, private education, law firms, retail, construction, real estate, hospitality, manufacturing and more. They are the leading provider of IT support solutions for small and medium sized businesses. INSI has been providing IT support services since 1995.<\/p>

INSI- your top Atlanta IT support company<\/strong><\/h3>

In addition to support services, we also offer additional options that include:<\/p>