Global Shortage of Chips: What is Happening & How It Affects Merchant Business Like Yours?

The global shortage of computer chips and other semi-con related components has been causing big delays to deliveries of PC, electronics and automobile products. The Point of Sales sector is not spared. 

What Caused the Global Chip Shortage?

To make the long story short, the pandemic and US sanctions on Asian chip makers are the main root causes among many other factors on the supply side.

The change of working and schooling to home based and the fear of missing out are other contributing factors. This caused the number of orders from makers of laptops, mobile phones, EV cars and many other consumer electronics surge to the moon.

Increased demand versus shrunk supply, you have the rest of the story. You may already have felt it from the limited models of desktops or laptops you are trying to buy off an electronic store. 

Effects on the POS industry

A POS system is ultimately an industry computer with a touch screen panel integrated, which means it is also full of chips. Due to the global shortage, many smaller POS makers are unable to secure adequate chip supply. In general everyone is facing a much longer lead time and increased cost down the whole supply chain. Some factories have even rejected orders which they had previously committed to.

What Is The Outlook?

Many expect the global chip shortage to extend into 2022 and only see adequate chip supply by 2023. Source: https://www.techrepublic.com/article/the-global-chip-shortage-what-caused-it-how-long-will-it-last/

US and Chinese governments have been committing tens of billions of dollars to build new factories to catch up with the production, however they will all take time before supply meets the demand. 

MEGAPOS Encourages You to Plan Early

MEGAPOS, being one of the largest POS solution providers in Singapore, has had a close relationship with renowned POS makers for many years. In this difficult time, we are receiving unreserved support from them while trying to fulfill our increasing orders. To protect our clients’ interest and meet the deployment timeline, we work closely with all parties to better manage the deliveries. We are taking orders and forecasts from our clients as early as 6 months in advance. We would strongly encourage you to speak to your POS sales rep(even if it ain’t MEGAPOS) now if you have any new projects or POS requirements in the next 6 to 12 months.

If you would like to explore MEGAPOS, and how existing govt subsidy plans may help you,  it is now a great time to drop MEGAPOS your contact details.