Companies in the web hosting industry could wait up to a year for component delivery as the server industry continues to face persistent shortages.
According to Mitac Holding Chairman Billy Ho, the server industry currently has to wait up to 52 weeks for component delivery, which is only expected to worsen in the second half of 2021, and unlikely to improve until after. ‘in 2022.
This is largely due to the fact that demands for components from other industries will also increase this year.
Some of the key components facing shortages include IC motherboards, SSDs, and processors. With the current supply tight, shortages have also had a direct effect on the prices of these components, with costs reaching record highs. COVID has led to shortages of substrates and wafers and reduced assembly capacity.
Widespread shortages in the computer industry were first raised in April 2021, when Cisco CEO Chuck Robbins said the computer chip shortage is expected to last for most of this year.
In the case of web hosting providers, in order for them to continue to rent their services and technologies for hosting websites on the Internet, the components used to connect their computers to the servers that host websites must be readily available.
Mitac Computing president Michael Lin said that while the company’s orders for the third and fourth quarters are almost on par with the second quarter, the company’s second-quarter deliveries could be the peak of 2021 due to component shortages, according to reports.
Mitac Computing’s server motherboard production is primarily handled in Taiwan and China, and the company’s server assembly lines are located in the United States, Taiwan and China.
Via DigitalTimes Asia