{"id":42113,"date":"2021-05-20T13:12:26","date_gmt":"2021-05-20T13:12:26","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=7afd3bd207fa24db9bcb98b4a5fddbf3"},"modified":"2021-05-20T13:12:26","modified_gmt":"2021-05-20T13:12:26","slug":"global-chip-shortage-hits-cisco-supply-chain","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/global-chip-shortage-hits-cisco-supply-chain\/","title":{"rendered":"Global chip shortage hits Cisco supply chain"},"content":{"rendered":"


\n Sabina Weston<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
20 May, 2021<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Cisco<\/a> has confirmed that its recent supply chain<\/a> disruption has been a direct result of the larger global semiconductor shortage<\/a>.<\/p>\n

Chief financial officer Scott Herren estimated during an earnings call on Wednesday that the supply chain issues, which are impacting the forecast for the current quarter’s adjusted gross margins, could last until the end of 2021, with a possibility that they would extend until 2022.<\/p>\n

\u201cI think the supply chain issues will stay with us at least through the end of this calendar year,\u201d he told the attendees, adding that Cisco had \u201clocked in both supply and pricing with some of the key component<\/a> providers\u201d.<\/p>\n

Although no specifics were given during the call, a spokesperson for the company has since confirmed to IT Pro<\/em> that the supply chain issues were related to the global semiconductor shortage, which has been plaguing the tech and automotive<\/a> industries for the duration of the pandemic.<\/p>\n

\u201cDue to material shortages across the semiconductor industry that are outside of our control, Cisco is experiencing extended lead times on select components. While the impacts are not broad-based across all Cisco products, there are some delays to production schedules for certain product families,\u201d the spokesperson told IT Pro<\/em>.<\/p>\n

They added that the situation is expected to last through the end of our current fiscal year and into the next as efforts to expand capacity are realised and demand stabilises.<\/p>\n

\u201cCisco has and will continue to be proactive in mitigating the impacts of these supply constraints and we are working closely with our network of suppliers and manufacturing partners to minimise delays and expedite orders for our customers,\u201d they added.<\/p>\n

The confirmation comes weeks after\u00a0CEO Chuck Robbins told the\u00a0BBC<\/a><\/em>\u00a0that it would take \u201canother six months<\/a> to get through the short term\u201d of the global chip shortage, adding that the crisis is unlikely to be fully resolved until\u00a02022.<\/p>\n

“The providers are building out more capacity. And that’ll get better and better over the next 12 to 18 months,\u201d he said, adding that the\u00a0shortage was\u00a0caused by unprecedented demand for semiconductors, which \u201cgo in virtually everything\u201d.<\/p>\n

The shortage is what might have prompted the company to acquire<\/a> fabless semiconductor company Acacia Communications, the finalisation of which was announced on Wednesday. Cisco also reported<\/a> a 10% year-on-year growth in total orders, representing the strongest demand in its products for almost a decade.<\/p>\n

The company generated $12.8 billion in revenue, up 7% year-over-year, with continued momentum in transforming its business<\/a> to software and subscriptions. According to the company, 81% of software<\/a> revenue was sold as a subscription, up from 76% last quarter. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Sabina Weston<\/p>\n

20 May, 2021 <\/p>\n

Cisco has confirmed that its recent supply chain disruption has been a direct result of the larger global semiconductor shortage.
\nChief financial officer Scott Herren estimated during an earnin…<\/p>\n","protected":false},"author":627,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42113","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/627"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=42113"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42113\/revisions"}],"predecessor-version":[{"id":42114,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42113\/revisions\/42114"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=42113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=42113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=42113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}