Embedded tech specialist Advantech warns component shortage will slow growth
(2021/03/11)
- Reference: 1615451408
- News link: https://www.theregister.co.uk/2021/03/11/advantech_chip_shortage/
- Source link:
COVID-related silicon supply chain issues have impacted core information technology products, according to Taiwanese industrial tech specialist Advantech.
Speaking at an [1]investor’s meeting yesterday, the company's president of Embedded and IoT products Miller Chang described positive sales growth in Q4 2020 and Q1 2021 with Q1 2021 book-to-bill ratio ( incoming orders vs. outgoing orders) at 1.52 and annual booking Q1 growth rate expected to reach 50 percent.
[2]
“However,” stated Chang, “due to component shortages and long lead times, an estimated 5-10 percent impact in the second quarter Y2020 is expected.”
The company has scrambled to implement measures that deal with the supply shortage amid high demands. Advantech procurement is asking suppliers to set aside parts for them for the next 12 months.
[3]
Advantech's woes means it joins the automotive sector in [4]blaming revenue decreases on the chip shortage. The Taiwanese company's
Advantech’s products include an [5]product mix includes industrial PCs, embedded computers, servers, motherboards, cloud equipment and edge platforms. Its clients include big name like IBM, Amazon and Cisco.
Which brings the component crunch a little closer to home for Reg readers.
Advantech’s supply issues are not surprising as the world faces an unfortunate combination of a [6]chip shortage and high [7]PC manufacturing demand that has places like Taiwan [8]trucking in water just to prevent a pause in semiconductor manufacturing.
[9]
Advantech customers can expect a price increase of five percent from April to reflect the supply problems and to discourage hoarding and overbooking. ®
Get our [10]Tech Resources
[1] https://www.advantech.com/resources/news/advantechs-booking-performance-strengthens-first-quarter-and-service-iot-group-will-be-an-important-future-growth-engine
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2021/02/10/honda_nissan_report_semiconductor_shortages/
[5] https://www.advantech.com/products/atoz
[6] https://www.theregister.com/2021/02/13/biden_chip_shortage/
[7] https://www.theregister.com/2021/03/04/idc_expects_pc_sales_to/
[8] https://www.theregister.com/2021/02/24/tsmc_drought/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://whitepapers.theregister.com/
Speaking at an [1]investor’s meeting yesterday, the company's president of Embedded and IoT products Miller Chang described positive sales growth in Q4 2020 and Q1 2021 with Q1 2021 book-to-bill ratio ( incoming orders vs. outgoing orders) at 1.52 and annual booking Q1 growth rate expected to reach 50 percent.
[2]
“However,” stated Chang, “due to component shortages and long lead times, an estimated 5-10 percent impact in the second quarter Y2020 is expected.”
The company has scrambled to implement measures that deal with the supply shortage amid high demands. Advantech procurement is asking suppliers to set aside parts for them for the next 12 months.
[3]
Advantech's woes means it joins the automotive sector in [4]blaming revenue decreases on the chip shortage. The Taiwanese company's
Advantech’s products include an [5]product mix includes industrial PCs, embedded computers, servers, motherboards, cloud equipment and edge platforms. Its clients include big name like IBM, Amazon and Cisco.
Which brings the component crunch a little closer to home for Reg readers.
Advantech’s supply issues are not surprising as the world faces an unfortunate combination of a [6]chip shortage and high [7]PC manufacturing demand that has places like Taiwan [8]trucking in water just to prevent a pause in semiconductor manufacturing.
[9]
Advantech customers can expect a price increase of five percent from April to reflect the supply problems and to discourage hoarding and overbooking. ®
Get our [10]Tech Resources
[1] https://www.advantech.com/resources/news/advantechs-booking-performance-strengthens-first-quarter-and-service-iot-group-will-be-an-important-future-growth-engine
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2021/02/10/honda_nissan_report_semiconductor_shortages/
[5] https://www.advantech.com/products/atoz
[6] https://www.theregister.com/2021/02/13/biden_chip_shortage/
[7] https://www.theregister.com/2021/03/04/idc_expects_pc_sales_to/
[8] https://www.theregister.com/2021/02/24/tsmc_drought/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YEn4TqJfvcCmQxZVQCOXCwAAAE4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://whitepapers.theregister.com/
"to reflect the supply problems and to discourage hoarding and overbooking"
And maybe, just maybe, to skim an additional 5% since demand is up. It's the law of capitalism, come on.
Can we get a top hat with monocle icon ?
Right, I know the way out.