Situation: Global Semiconductor Chip Shortage (2020–2023)
Brief
From 2020 to 2023, a multinational ITES company, with data and analytics operations across APAC & EMEA region, encountered prolonged operational delays due to the global semiconductor chip shortage. The crisis, fuelled by export restrictions, pandemic-induced factory shutdowns, and unprecedented demand surges, affected the timely procurement of critical IT infrastructure components.
Challenges faced by the client
- Procurement Delays: Lead times for essential components extended by up to 12–16 weeks.
- Geopolitical Disruptions: Export controls and regional instability restricted access to key suppliers.
- Logistics Chaos: Factory closures and port congestion caused delays and cost escalations.
- Demand Surge: Soaring demand from remote work and EV/IoT sectors strained global chip availability.
- Supplier Visibility Gap: Limited insight into Tier-2 and Tier-3 suppliers hampered risk management.
How did Datasurfr help?
| Features | Company action | |
| Proactive Risk Management | Geographical Intelligence alerts provided early warnings on policy shifts such as US CHIPS act and identified geopolitical hotspots, enabling visibility into export restrictions and manufacturing disruptions. List View offered a consolidated dashboard of real-time global risk events across pre-selected geographies to assess supply chain vulnerability. Concentration Risk Index listed 12 operational risks and assessed the criticality and exposure levels, helping prioritise mitigation strategies. The proximity alerts provided intelligence about natural disasters (Texas winter storm, Renesas fire, floods in Thailand) across critical assets and about factory shutdowns providing insights into second-order effects. | Diversified sourcing across regions across regions to reduce geopolitical and supplier concentration risks. Purchase orders were realigned, and timelines adjusted to avoid delays and cost escalation. Fallback contracts were formulated with alternate vendors. |
| Real-time Response | Interactive maps and real-time alerts enabled the security and operations teams to track developments across the region. 24×7 intelligence analyst support provided round-the-clock assistance and in-depth intelligence information on request. | Swiftly adjusted workflows and co-ordinated deliveries. |
Results
- Proactive Risk Mitigation: Early detection of risks enabled timely supplier shifts and contingency planning.
- Timely Response to Emerging Threats: Live monitoring tools and real-time alerts supported quick action, minimising delays.
- Operational and Financial Resilience: Procurement realignment and supply chain visibility ensured business continuity and financial resilience.
Conclusion
By leveraging Datasurfr’s risk intelligence, the ITES client improved supply chain visibility, responded swiftly to disruptions, and maintained operations during the global chip shortage. The case underscores the importance of real-time intelligence and predictive analytics in building resilience against global supply chain challenges.