May 14, 2021
Videology Global Supply Chain Impact Notice
To Our Valued Customers:
As the worldwide economy gradually recovers from the effects of Covid-19, the aftershocks to global supply chains related to semiconductor production continues to reverberate. Stay-at-home employees drove PC and sales in 2020 and 5G is expected to bump cell phone demand in 2021. Demand for key components involved with building our products has created spot shortages and has driven costs higher.
In addition, chip suppliers have dropped production of key components, in some cases with no direct replacement. This has caused direct impact to customers requiring in some cases re-engineering of legacy products. We can look back to the dual effects in 2011 to semiconductor production from the Japan earthquake and Thailand flooding to see how this may play out near term.
Demand will strip supply as large manufacturers attempt to corral parts to continue production. However, we see even car manufacturers idling production lines. As no two events are alike, we are in unchartered waters and fully expect no near-term improvement through 2021 and may last upwards of two years. This article summarizes the problems at hand.
Videology to this point has attempted to absorb the impact of chip price increases from our suppliers but can no longer do this ourselves so there will be price increases on certain cameras as lead times extend further out. To mitigate the effects of these price increases, we kindly ask that you provide long term PO’s and rolling forecasts through calendar Q2 2022 to allow us to plan for components to build your cameras.
Videology will first be reaching out to customers who order the 20B14 series and 20B45 series cameras. Component price increases as a percentage on these two camera families bill of materials have been impacted more than our other models.
Let us work together to gather up your forecasts so that expected impacts from these shortages are minimized. On behalf of Videology, we thank you for your business.