24 January, 2022 - The COVID-19 pandemic saw an unprecedented rise in demand for ‘chips’ - the tiny integrated circuits that store and transmit data in modern intelligent devices and machinery. Abriox CEO Sean Daniels discusses the impact the chip shortage will have on the supply of remote monitoring units over the next year.

“If there is one piece of advice I can give to any organization whose business is reliant on maintaining the integrity of its oil, gas or water utility pipelines, it’s don’t delay in placing an order if you are planning to replace any integrated circuit-driven device or piece of equipment before the end of 2023,” said Abriox CEO Sean Daniels.

“At this stage, Abriox doesn’t anticipate any shortfall in supply of our existing and new products, even taking into account our robust growth,” Sean said, adding: “But, if you are planning to replace any remote monitoring devices within the next 18 months, my recommendation is to act sooner rather than later. Being without functioning devices could have serious safety, regulatory and economic impacts.

“The global shortage of integrated circuits, or ICs, is now being forecast to last well into the fourth calendar quarter of 2023 and even into 2024. It is inconceivable that it will not squeeze the production and supply of remote monitoring units for the control and monitoring of pipelines.

"The production of anything that uses ICs to access the ever-evolving IoT - the Internet of Things - to function, receive and transmit data has been significantly impacted by this crisis.

“The main cause of the short supply in these integral components has been the COVID-19 pandemic. Chip-manufacturing plants were temporarily shut down and/or production slowed to incorporate new social distancing and international transport adapted to new safety measures and regulations across multiple territories.

“At the same time, the demand for printers, games consoles and even bread makers, among other chip-reliant electronic products, skyrocketed as we adjusted to being at home and finding ways to work, educate and entertain ourselves 24-7 for months.

“And, as we continue to come out of the toughest stages of the pandemic, the cost of silicon has increased.

"Many tech-reliant companies – from games software and console makers to car manufacturers - have reported significant delays in not only bringing new innovations to market, but even just fulfilling orders already placed months ago.

“Overlaid onto this, is the sun-setting of 3G cellular communications in the US and the UK’s more conservative approach to gradually switching off 3G then 2G here. Both will produce a further strong increase in demand for 4G cellular network-compliant products.

“To find out more about how to mitigate your company’s risks relating to the global chip shortage and your remote monitoring needs, contact the Abriox team today,” Sean added.