Skip to main content Skip to footer

The long view of the chip shortage

June 23, 2021


In brief

Global chip shortage problem may be 'long term'

Hit by a perfect storm

Electronics demand goes into the stratosphere

As online sales boomed and the demand for electronics surged, consumer electronics lead its growth and is projected to continue to grow by 2023.

Long lead times

Strong demand drove an imbalance in supply. Building additional capacity requires 6-9 months, billions of dollars and is not a quick solution.

Logistics constraints limit chip shipments

Chip shipments themselves were delayed due to flight reductions, putting further pressure on air cargo capacity that saw a decline of 20% in 2020.

The new normal?

This is not new for semiconductor companies, like the 2011 disaster in Japan. This is not a one-off issue due to the rising demand for electronics.

Accenture’s Global Semiconductor Lead, Syed Alam joins Cheddar’s Kristen Scholer to discuss the role of the global semiconductor shortage on impacted.

Strengthening supply chain today

Know what chips you use, and where they come from

A record of multi-tier suppliers can help identify trouble areas in the supply chain, such as where are the concentration risks.

Learn current time to failure and time to recover

It is important to understand the impact disruptions will have on time. Consider a stress test to assess risks in the supply chain.

Step into the supplier’s shoes

Companies should ask themselves how attractive they are to suppliers. Organizations must consider how to improve their attractiveness as a client.

Strengthen analytics control tower capabilities

Centralize supply chain monitoring to gain insight and put a spotlight on potential problems like limited capacity or geo-political tensions.

Reimagining supply chain resilience for the future

Have a clear understanding of the competitions of available resources for chip fabrication.
Syed Alam

Managing Director – High Tech, Global Lead

Syed is responsible for global semiconductor business and has advised companies on growth strategy, M&A, GTM strategy, and service revenue models.

Steve Craen

Managing Director – Accenture Strategy, Supply Chain, Operations and Sustainability Strategy

Steve advises leaders across industries on end-to-end supply chain optimization.

Jolie LeBlanc

Senior Manager – Accenture Strategy

Vanessa Naik


Visit our Subscription and Preference Center