WISeKey International Holding AG (NASDAQ: WKEY) disclosed that it has decided to revolutionize its supply chain capabilities by investing more in it. Currently, the firm has experienced a strong blow because of the shortage of chips in the industry which resulted in order accumulation.
Causes of Chip Shortage
Market experts are predicting that this shortage will continue in 2022 as well and currently it has impacted the businesses of various firms. Various firms were forced to shut down or temporarily halt their production due to this shortage. Experts revealed that multiple factors contribute to the shortage of chips.
The world has faced a pandemic that is still affecting the lives of many but in the start, it has caused the decline in the demand of the consumers and the semiconductor industry has lessened the production capacity to prevent any blow to its profitability. After the reduction of production capacity, the tech sector has seen a surge in the demand for laptops, computers, and mobile phones due to the increasing need to work from home. This increasing demand causes a shortage of chips.
Billions of secure chips of WKEY are inserted in high-tech products and goods to secure data, communication, and firmware against cyberattacks. This comprises routers, modems, energy-smart meters, drones, and medical devices. Its digital partner has chosen it to meet its needs. But in the meantime, the book-to-bill ratio of the firm is bursting, it has to confront its current supply chain and discover short- and long-term solutions to keep and even proceed to lift the bar on service quality.