Despite talk of the pandemic slowing down, concerns around supply chain are continuing to grow, with a shortage of semiconductors a top issue, according to a report from Avnet Silica. Credit: Thinkstock Issues around supply chain, often driven by semiconductor shortages, remain the top concern for most industry sectors despite talk of the pandemic slowing down, according to a report from electronic components and semiconductor distributor, Avnet Silica. The report, which is based on a study conducted by Avnet consultants after reviewing 30,111 earnings call across different sectors between January 2018 and April 2022, points out that supply chain issues occupied more than 60% of airtime in earnings calls across all industries in 2022, compared to just 47% and 37% in 2021 and 2020 respectively. Many of the supply chain issues discussed on the calls can be attributed to shortages of semiconductors, as their demand continues to grow, outstripping supply. This is in contrast to the popular belief that lockdowns initiated due to the pandemic was responsible for such issues. “It (the pandemic) certainly added a lot of pressure to the system, with ports and factories closing during lockdown. However, if it was really all down to the pandemic and lockdowns, companies would have largely recovered by now. But that is not the case,” said Mat Ransom, director of supply chain programs at Avnet EMEA. “There are more and more electronic components going into so many of our products these days, from our clothes to our cars. And the rate at which consumer demand grows is not as easily matched by growth in production of electronic components like semiconductors and microcontrollers,” Ransom said. Chip makers slow to ramp up capacity The reason for demand outstripping supply, according to Ransom, is the relatively low rate of annual capital investment in semiconductor production, which puts brakes on the ability to expand capacity. The approximate value of investment is around 15% of demand over the next four years across major chip manufacturers, the report shows. “It can be a slow process to ramp up production and supply of these essential components. There are several new semiconductor factories planned to come online in the next five to six years, but in the meantime, demand continues to grow,” Ransom said. A separate report from market research firm International Data Corporation (IDC) expects tight semiconductor supply to continue through the first half of 2022 as the industry builds up inventory to normal levels. The 20 industries included in the Avnet Silica report include consumer electronics, automotive, aerospace and defence, telecom, fashion, retail, conglomerate, beverages and farming. The report also says that as semiconductor shortages continued to grow, supply chain issues were brought up on 100% of earnings calls in 12 different sectors this year, including automotive, electronic components, computer hardware and consumer tech. Other factors heavily plaguing enterprises across these sectors include inflation and issues around talent. Related content feature TransUnion transforms its business with IT On the heels of its Neustar acquisition, the consumer credit reporting agency seeks to give customers access to its troves of consumer data to fuel next-generation services through solutions platform OneTru. By Paula Rooney Apr 26, 2024 6 mins Financial Services Industry Digital Transformation Artificial Intelligence feature The 10 highest-paying industries for IT talent The tech industry isn’t the only hot spot for IT jobs, as there’s a growing demand for IT pros across every industry. These 10 verticals pay the most for IT roles, according to data from Dice. By Sarah K. White Apr 26, 2024 7 mins Salaries IT Jobs Careers brandpost Sponsored by Palo Alto Networks M&A action is gaining momentum, are your cloud security leaders prepared? Direct visibility is critical in M&A, and cloud-native application protection platforms (CNAPP) are ideal to provide this capability. By Amol Mathur, SVP & GM of Prisma Cloud, Palo Alto Networks Apr 25, 2024 4 mins Cloud Management news CIOs eager to scale AI despite difficulty demonstrating ROI, survey finds CIOs prioritize integrating AI into their organizations alongside cybersecurity, according to a new survey. By Sandeep Budki Apr 25, 2024 5 mins Artificial Intelligence PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe