What Is IIoT and How Will the Chip Shortage of 2021 Affect It?
IIoT – the industrial internet of things – refers to interconnected instruments, sensors or other devices that are networked and can be centrally controlled. Industrial IoT devices are often connected to industrial software and applications for energy management, quality assurance or improving manufacturing efficiency. The internet of things can also refer to the personal network of smart home devices, fitness trackers and other lifestyle tracking gadgets consumers increasingly utilize on a daily basis. Many homeowners now have lights, thermostats, door locks and security systems that are all interconnected and can be controlled through various voice commands or mobile applications. IIoT shares some significant functional similarities with its consumer-facing cousin. Businesses can:
- Be notified with alerts about equipment failures
- Collect data on efficiencies and production
- Accumulate data from a variety of connected devices that can then be compiled and analyzed
- Use machine learning and AI to develop solutions that lower lead times
- Decrease defective products
- Improve product traceability
- Better gauge maintenance requirements and equipment depreciation
- Oil and gas
How Is the Global Chip Shortage Impacting IIoT?The shortages in more visible consumer-facing industries often get more publicity due to their products’ impacts on day-to-day life. Consumers who want to buy a new car might be aware that the price of new cars, and even used cars, are being driven up by the global chip shortage. Those same consumers are less likely to think about how the chip shortage may be impacting the development and creation of automated manufacturing equipment that helps build their cars. Industrial IoT is fundamental to the manufacturing, processing and packaging of products we purchase and use daily, but consumers might only become aware of production problems when they suddenly notice increasing costs, scarcity or inflation. The extent to which components and raw material shortages are affecting tech companies varies. Network-switch manufacturers are coping with long lead times on silicon. Companies like Intel and AMD have not had much difficulty finding the materials for server CPU silicon wafers, but they have had to divert resources and make operational changes to better manage their supply chains. The head of NVIDIA’s DGX unit, which produces AI servers, commented to Data Center Knowledge that he has struggled less with CPUs and GPUs than he has with more minor components like resistors, transistors and power modules3. Some industry experts are expecting manufacturers to run into trouble meeting expectations on the consumer side of IoT (i.e. home automation)4. Device manufacturers are facing shortages in both talent and components like semiconductors, CPUs and GPUs in a rapidly growing industry that is expected to include 41.6 billion connected devices by 2025. As a work around, IoT companies are attempting to find what chips they can and then develop firmware adaptations that allow them to operate effectively in their devices. How much or how severely the chip shortage effects IIoT companies and other tech manufacturers comes down to preparedness, flexibility and experience. Penguin Edge is proud to say our stellar operations team are supply chain veterans, so we have been able to minimize the impact of these the global disruptions on our customers.
Learn More About How Penguin Edge Helps Develop the Future of IIoT SolutionsPenguin Edge’s edge servers help provide the processing power to drive an array of machine learning and AI-powered sensors and automated infrastructure. You can learn more about some of our technologies on our website or by contacting us at 602-438-5720. References: