The current chip shortage

 The current chip shortage is causing major headaches for Original Equipment Manufacturers (OEMs) across all industries. The shortage of components is causing delays in production and shipping, and ultimately impacting the bottom line for businesses. In order to mitigate the effects of the shortage, OEMs have several options available to them.


One possible solution is to redesign the product and remove the missing component. According to a survey by Avnet, this is a direction that many OEMs are now considering. However, this approach can be time-consuming and costly, as the entire system must be exhaustively tested and verified. Additionally, if the product is subject to certification, the certification process may need to be repeated.


Another option is to bring the next release of the product forward, turning the problem of a missing component into an opportunity to move to the next version of the product early. However, this strategy may not be practical as product lifecycles are geared towards the time-in-market, which is largely influenced by external factors.


An alternative approach is to continue supporting the current version of the product for longer. This strategy may be more effective for businesses that have a strong market position for that product and can afford to retain customers through the shortage. However, it can also result in lost market share and decreased profits.


Ultimately, the right solution will depend on a variety of factors and will require careful consideration. OEMs must weigh the pros and cons of each option and make a decision that is best for their business. With longer lead times and price increases predicted by engineers in the coming months, the chip shortage is likely to continue causing problems for OEMs.

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