Semiconductor shortage to delay 4G expansion by six months

Consumers could dip into the quality of mobile missile service in the coming months. This, along with Bharti Airtel, Jio and Vodafone Idea (Vi), is likely to delay around 3-to-6 months of network expansions to 4G, if the global shortage of semiconductor and supply chain components challenges continues.

Experts and analysts say that 4G network devices such as routers, base stations, and building infrastructure, typically using semiconductors and the lack of this title, can potentially disrupt their near-term availability, delay their broadcasting capability, and result in network congestion.

“If the lack of global chips continues, there may be potential disruptions in the availability of 4G network gear that use semiconductors, which, in turn, delay network deployment and procurement across telcos, can slow down expansions,” Nitin Soni, senior director of global ratings manager, Fitch.

It added some potential delays in 4G wallets-related capex caused by telcos to consume “due to the long term lack of semiconductor network capability and the impact on quality coverage during heavy data consumption”.

Global retailers network providers Bharti Airtel and Vi include Ericsson, Nokia, Huawei and ZTE while Samsung is the only supplier to Reliance Jio.

Global retailers like Ericsson expect chip scarcity to continue into next year and agree “to finally be colliding with the industry as a whole”, if the long-term conditions of today’s semiconductor market prevail. Whatsappstatusnew