You've seen it, less and less cars on the lot, prices of electronics inching higher, fewer and fewer choices at the store. The international chip shortage is starting to be visibly obvious. Industries ranging from medical devices to consumer electronics are starting to feel the effects of the chip shortage.  

Average consumers have many questions when it comes to the chip shortage. Is a chip shortage really a big deal? Will it begin to affect our day-to-day lives? Do I need to take any steps now to prepare for the chip shortage?  

These are some great questions that people of all industries need to consider – especially those in the telecom industry. As we dive into the chip shortage, we will discuss what a chip is, why the chip shortage came to be and if there are any companies that have prepared for a chip shortage disaster. 

What is a chip? 

A chip, also known as a microchip or semiconductor, is a small piece of technology that acts as the brains to electronic devices. These chips can be as small as a few square millimeters to a few square inches. However, their size is not indicative of their power.  

These tiny powerhouses have the power to individually “think” for automobiles, air conditioners, washing machines, refrigerators, and so much more. Not to mention computers, smart phones, televisions, cameras and other communication devices all use chips. Without these chips, these electronics cannot function.  

Why is there a chip shortage? 

Covid-19 shut down chip making factories for months. This shut down is enough to make an impact on chip availability. What made the situation worse was the increase in our dependence on electronics. As workers and students moved to remote status, their dependence on all things electronic increased 10-fold. Combine those two issues together, and you have created the perfect storm for a global chip shortage.  

Weather also played a big role in the chip shortage. In Texas, the harsh winter shut down some of the US’s only chip plants. Around the world, a fire destroyed a Japanese plant, and a drought in Taiwan affected production as well.  

Effects of a chip shortage 

Due to a lack of chips, consumers can expect higher prices with fewer options. This goes for all sorts of electronic equipment. In fact, some experts have said that the shortage will become most noticeable around the holidays as there will be fewer gifting options available. The options that will be available will have a higher price point than what we are used to.  

Hot ticket items like Xbox, PlayStation, TVs, and Apple products are all currently being affected by the chip shortage. But it’s not just every day electronic users that are feeling the stress. Telecom providers need to be prepared for a reduction in hardware stock. Especially considering that experts believe the chip shortage will continue into 2023. 

Companies unaffected by shortage 

While there’s a lot of downsides, there is some good news in the chip shortage conversation. There are some forward thinking companies that are well prepared for disasters such as this. The phone distribution industry has at least one such forward thinking company: 

NTS Direct, the leading value-added distributor of voice and data technology, owns and operates a state-of-the-art storage facility. Their 300,000 square foot warehouse houses millions of dollars' worth of inventory. With very little stocking shortages, NTS Direct is where you should turn if you are looking for quality devices.

If you're looking for the latest Grandstream, Avaya, and Yealink technology, NTS Direct is your go-to distributor.

Serving telecom providers in the United States, Canada and Mexico, NTS Direct has enough inventory to carry on, business as usual, through the chip shortage and beyond. What sets them apart from other distributors though, is their refurbished item program. The refurb program helps you save money and provide “high run rate” and “scarce” Poly, Cisco, Avaya, and NEC handsets through their established brokerage, Paragon. 

“It’s thanks to companies like NTS Direct that telecom providers can breathe a sigh of relief knowing that they will be able to meet their customer’s business phone needs,” says Ammar Rezek, President of NTS Direct. 

If you’re looking for a distributor that is forward-thinking and prepared for whatever comes, give NTS Direct a call at 1-877-483-5393.