Realtek bottleneck: Network and audio chips are in short supply

The massive bottlenecks in the production of electronic components and chips are now also affecting Realtek. The Taiwanese manufacturer, which has enormous market shares, can barely supply audio and Ethernet chips so that the production of notebooks and other devices is delayed.

As the Taiwanese industry service DigiTimes reports, Realtek Semiconductor is no longer able to fulfill the orders of many customers, which in some cases massively slows down the production of notebooks from brand suppliers such as Dell and HP. Notebook manufacturers currently have to wait 32 weeks before receiving the Realtek chips they have ordered.

Anyone who orders Realtek chips today will wait 32 weeks for delivery

Due to the enormous waiting times, which are well over half a year, the production of the currently extremely popular Chromebooks is stalling.

Another problem is that Realtek has a market share of more than 70 percent in the audio and LAN chips used in notebooks and was even able to claim up to 90 percent of the market in some special areas.

This also ensures that the production of voting machines for Brazil comes to a standstill and even the computers for gaming machines for the US market cannot be manufactured as planned.

The reason for the problems at Realtek is of course that the contract manufacturers for its chips are currently working at maximum capacity. In addition, there should be problems with the availability of important materials for network chips.

The bottlenecks at Realtek also affect the providers of xDSL devices and the automotive industry, where suppliers such as Bosch are no longer able to serve their customers’ orders to the usual extent.

Allegedly, the current demand exceeds the availability at Realtek by 30 to 50 percent, at least the sources of the report from Taiwan estimate.

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