Microchip shortage is impacting businesses in Charlotte

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CHARLOTTE, NC (FOX 46 CHARLOTTE) – Nissan is pumping the brakes on production due to a semiconductor chip shortage.  The auto company’s factory in Tennessee will shut down for two weeks.

A new outbreak of coronavirus cases in Malaysia is worsening the semiconductor ship shortage in the U.S.

“A semi-conductor conducts electricity, so it makes possible for millions of millions of electrical circuits to get put on one tiny chip and those electrical circuits are what helps computer determine ones and zeros so either electricity is flowing through a circuit or it’s not,” Blanchard said. “So, without these chips present, technology can’t work,” CEO and owner of Sterling Technology Solutions Tom Blanchard said.

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The shortage caught the attention of the White House back in February.  President Joe Biden signed an executive order to review and strengthen supply chains.

Since then, the problem has continued to get worse as manufacturers struggle to keep up with the demand.

Blanchard said he orders for vendors like Dell or Amazon, and products are taking up to eight weeks to come in.

“They need networking equipment, and they need all sorts of technology that they are not able to get on time,” Blanchard said.  “That is causing the equipment for our clients that’s normally delivered a day later or a couple of days later.  It’s in two months or three months.”

He says the problem is not just a supply issue, but the cost of one as well.

“So, either they are faced with the problem of waiting for the product that they want or having to buy a more expensive product that they don’t really need just to get something now,” Blanchard said.

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