Blog / Global & Trade / Supply Chain
The Semiconductor Chip Shortage Hits MedTech: Strategies to Build Resilient Supply Chains
The global semiconductor chip shortage is becoming an acute issue for MedTech companies. However, developing strategies to bolster supply chain resilience can help companies mitigate current and long-term risks.
News / Global & Trade / Government & Legislative Affairs / Regulatory Affairs / Supply Chain
AdvaMed Encourages Administration to Prioritize Transport of Medical Supplies
President and CEO of AdvaMed Scott Whitaker sent a letter to President Biden on behalf of the medical technology industry asking “the Administration to make the transport of medical supplies and equipment a top priority as you and your teams think through solutions to the ongoing transport and logistics crisis.”
“If we fail to create reliable access to semiconductors, we will be less able to provide modern medicines to our most vulnerable populations.”––Jim Farley, CEO, Ford Motor Co., and Pat Gelsinger, CEO, Intel
Wall Street Journal: “When the Chips are Down, Congress Should Support the Semiconductor Industry”
The prolonged COVID-19 pandemic, coupled with extreme weather events and geopolitical instability, has created supply chain challenges for the medical devices industry, along with many others. While the medtech industry is skilled at navigating supply chain fluctuations, the current situation merited the creation of a Supply Chain Working Group that focuses on three key areas:
Through a variety of public-private sector coordination councils and on a company-by-company basis, AdvaMed works with members and the federal government to facilitate the COVID response. This includes working with federal partners to address supply chain bottlenecks that affect manufacturers’ ability to support the COVID response, helping member companies navigate the Defense Production Act, and serving as a hub to inform the federal government about AdvaMed member capabilities to tackle the pandemic.
As the pandemic has worn on, the medical devices industry is encountering a growing number of upstream shortages critical to manufacturing. The semiconductor shortage, for example, has become an acute industry-wide issue impacting a range of critical medical technologies. AdvaMed member companies are also struggling to obtain sufficient quantities of resins, polymers, and medical grade packaging as they struggle to compete with other sectors that have larger market share. AdvaMed is working with members and federal partners to raise awareness about these critical shortages and the needs of the medtech industry, as well as to identify solutions.