The web hosting sector could face a long wait for component deliveries

Companies in the web hosting industry could wait up to a year for component shipments as the server industry continues to face ongoing shortages.

According to Mitac Holding President Billy Ho, the server industry currently has to wait up to 52 weeks for its component shipments, which is only expected to get worse in the second half of 2021, and unlikely to improve. until 2022.

This is largely due to the fact that component demands from other industries will also increase this year.

shortages everywhere

Some of the key components facing shortages include motherboard ICs, SSDs and CPUs. With the current tight supply, the shortages have also had a direct effect on the prices of these components, as costs have reached record highs. COVID has resulted in substrate and wafer shortages and reduced assembly capacity.

Widespread shortages in the computer industry were first raised in April 2021, when Cisco Chairman and CEO Chuck Robbins said the shortage of computer chips is expected to last most of this year.

In the case of web hosting providers, in order for them to continue to rent their services and technologies to host websites on the Internet, the components used to connect their computers to the servers that host the websites must be readily available.

Mitac Computing President Michael Lin said that while the company’s orders for the third and fourth quarters are nearly on par with the second quarter, the company’s second quarter shipments 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.

Going through DigitalTimes Asia

James S. Joseph