The post-2020 semiconductor shortage rippled across 169 industries. For one MedTech maker, the response wasn't waiting it out, it was modeling the scenarios and launching a non-affected device in five months.
Semiconductors sit inside almost everything that computes: phones, laptops, modems, cars, medical devices. When the pandemic shifted demand toward work-from-home technology while manufacturing was down and supply concentrated in China and Taiwan, a shortage set off a domino effect. The auto industry rebounded so fast that by late 2020 demand outran supply, widening the gap and feeding inflation. In all, the shortage touched 169 industries; many manufacturers cut production by 25%, and backlogs became normal.
Reshoring helps (Intel’s Arizona fabs among them) but no one company resolves this. Some products still need older chips that the newest fabs won’t prioritize, and the industry depends on a complex global web of raw materials, equipment, design software, and specialized manufacturing. Building domestic capacity reduces future risk; it doesn’t eliminate it.
In late 2021, a large MedTech company engaged Trexin as chip suppliers struggled to meet demand for life-saving devices. We helped lead a cross-functional team of their engineers and business leaders, modeled supply-and-demand scenarios against several mitigation options, and pursued the key one: launching a device that wasn’t affected by the shortage to fill the gap. We took it from idea to field launch in five months, the fastest launch the Client had ever completed.
When a critical input gets scarce, resilience comes from modeling your options clearly and executing the best one fast, not from waiting for the market to recover.
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