Supply Snarls Disrupt Chips and Ships as Higher Costs Abound



Enda Curran | Bloomberg

The knotted supply chains that have dogged manufacturers the world over through the pandemic are showing few signs of a quick unwind even as the public-health crisis eases, adding fuel to the global inflation debate.

Costs continue to climb as shipping containers and semiconductors remain in short supply, a dynamic that’s hurting both production and distribution. The latest victim: Samsung Electronics expects the crunch to pose a problem next quarter and is considering skipping the introduction of a new Galaxy Note — one of its best-selling models — this year.

Other companies like manufacturer and developer ProVista Group, which makes everything from automobile electronics to energy storage power products, are on the frontline of the disruption.

Semiconductor prices are as much as 30% higher than usual and in general, delivery times have ranged from 30 and 60 days to six months or longer, Steve Chuang, founder and chief executive officer of Hong Kong-based ProVista, said in an interview. He’s buying chips now to ensure supply for future production.

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