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How the micro chip shortage is affecting EU care homes

Posted by: Jo Love
Category: Care Home IT Support, Care Home Technology, Tips and advice

We have previously blogged on the global chip shortage and how we have needed to increase some lead times on delivering projects within our care homes.

The shortage has exposed Europe’s dependency on Asia, where most chips are manufactured. It has been more problematic for the EU, which is well behind on-chip productions.

Both the EU and the UK have ambitions to increase the market share in this sector. However, it is worth noting that Europe is behind on multiple fronts, in stark contrast to the US, where firms are leading the way in determining which chips get made as a priority.

Experts think there is little sense in spending large sums of money on manufacturing. A region as expensive as Europe will also seek orders elsewhere, such as the US.

While the current chip production headaches are still ongoing, things are beginning to clear up. Analysis from Gartner suggests that there will be a global surplus of chips again in two years.

We will continue to work closely with our suppliers to create accurate forecasting and visibility, enabling us to get a clear view of the end-to-end supply chain.

To discuss your future project plans, get in touch with the GHM Care team.

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