Global semiconductor shortage hitting home in transportation and telematics

Published on March 30, 2021

Covid-19 pandemic impacting semiconductor industry

There’s no question the global COVID pandemic is having increasingly unexpected impacts on our lives. Some of the newest impacts include shortages in the electronics we use every day. As reported by CNBC, the pandemic is having a direct and significant impact on the semiconductor industry causing shortages from everything from PlayStations to the Chevy Malibu. Having to stay close to home has changed our habits, increasing the demand for electronics like Smart TVs, gaming consoles and cell phones. As IBM reports: “A global shortage of these tiny, essential microelectronics that make so many things smart and connected—cars, homes, devices, cities—has come just as demand for these new necessities seems insatiable.” For customers who use telematics in their fleets, these production challenges are making it hard to get everything from telematics devices and tablets to the vehicles themselves.

Semiconductors are complex to make

The challenge, as reported by the Semiconductor Industry Association, is that: “Making a semiconductor is one of the most complex manufacturing processes. Lead times of up to 26 weeks are the norm in the industry to produce a finished chip. Most industry analysts believe the current short-term supply shortage will ease in the coming months as supply adjusts to meet demand.”

What does the semiconductor shortage mean for you?

Securing new inventory of telematics devices, tablets and vehicles are going to be challenging over the next few months. If you have orders in now, please be patient as it’s likely going to take weeks to receive your product. If you’re looking at ordering new equipment for 2021 – my advice would be to place your orders as soon as possible to minimize the impact from the supply chain. Connect with us today and we can work with you to build a plan for your telematics deployment.

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Brian Mackintosh

VP Operations


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