Showing posts tagged 'artificia'
29 September 2021
Communications including 5G will drive the components market
According to IC Insights, the communication sector’s share of integrated circuit sales reached 35% in 2020 and is expected to grow to 36.5% by 2025. For perspective, the automotive sector’s share of integrated circuit sales was 7.5% in 2020 and will grow to 9.8% by 2025 - significantly less than communications.
What’s driving such high demand for ICs in the communications sector?
There are four big tailwinds:
- Edge computing
- Internet of Things
- AI (artificial intelligence), MI (machine learning) and data analytics
5G is the main driver for components demand, with 5G infrastructure rollout happening slowly, but surely. We are nowhere near a complete version of 5G, and networks are in a race against time to deliver a reliable service.
The first step for networks is replacing low-band 4G spectrum, followed by mid-band spectrum that uses 2.5, 3.5 and 4.5 GHz, enabling faster data speeds. The final step is the rollout of millimetre wave, which enables true 5G speeds. Millimetre wave also happens to be a precursor for next-generation 6G.
On top of 5G infrastructure rollout you have more 5G-enabled devices coming to market, such as smartphones, tablets and laptops. Smartphones, in particular, are leading the way for 5G adoption, putting faster data in our hands.
The rapid growth in IC demand in the communications sector also stretches to other components like modems, memory and antennas. 5G isn’t just an IC boon - it’s a boon for all the electronic components needed for 5G.
Second to 5G we have edge computing, which by a miraculous twist of fate is needed to deliver a 5G experience (and needs a whole lot of components).
Edge computing puts compute capabilities relatively close to end users and/or IoT endpoints. In doing so, it reduces latency, while 5G delivers faster data speeds, providing a seamless experience on certain devices.
Internet of Things
IoT describes a network of connected smart devices that communicate with each other. For example, a vital sign monitor in a hospital could communicate with medicine dispensers and automate medicine dosages for doctors.
The Internet of Things has been talked about as a trend for several years, but we now have real applications that are useful.
AI (artificial intelligence), MI (machine learning) and data analytics
AI (artificial intelligence), MI (machine learning) and data analytics require enormous, powerful data centres to power them. These data centres require significant investment in chips, memory and other electronic components.
Also, AI, MI and data analytics need cloud computing, edge computing and in some cases 5G to deliver a real-time experience.
By 2025, the communications sector is forecast to have a 36.5% usage share of integrated circuits, making it the biggest consumer of semiconductors.
Demand for integrated circuits, discrete circuits, optoelectronics and sensors will grow to an all-time highs thanks to the industry tailwinds in this article. The future is bright, but to stay ahead, a robust supply chain will be needed.
Electronic components distributors like Cyclops are helping supply meet demand, while the communications sector battles to secure chip orders. Call us today at +44 (0) 01904 415 415 or email email@example.com
01 September 2021
Component Prices Rise 10% to 40% - But why?
While component price rises are expected when demand outstrips supply, the scale of recent increases has come as a shock to many businesses.
In its Q3 Commodity Intelligence Quarterly, CMarket intelligence platform Supplyframe reports that some electronic components have seen prices rise by as much as 40%, making it uneconomical for products to be made.
In particular, semiconductors, memory, and modems are seeing 10 to 40% price increases, exceeding what most analysts envisioned for 2021.
Why are prices rising?
Price rises start with materials. There are long lead times for many raw materials, causing shortages. Add rising commodity prices and difficulties transporting products and you have a disrupted manufacturing economy.
You also have to factor in the impact of the coronavirus pandemic, which has caused labour shortages and disrupted the manufacturing economy with shutdowns.
Logistics is also a big fly in the ointment for electronic components. The industry is recovering from COVID-induced shutdowns and travel restrictions are causing problems at borders, creating delays that ripple through the supply chain.
Supply and demand
The bulletproof economics of supply and demand also rule the roost for electronic components, and demand is higher than it has ever been.
We are in a situation today where most electronic components manufacturers are running at 99-100% capacity and can’t keep up with demand.
Demand is outstripping supply for chips, memory and communications components like integrated circuits, discrete circuits, optoelectronics and sensors, creating a bidding war as manufacturers scramble to get what they need.
Growing demand for new technologies
Emerging technologies like artificial intelligence, machine learning, virtual reality, augmented reality and edge computing are fuelling demand for smarter chips and data centre modernisation, while technologies like 5G and Wi-Fi 6 are demanding infrastructure rollout, which requires significant investment.
Across the board, technology is booming. Manufacturers are making more products for more people, and they must do so while balancing costs at a time when component prices are rising - no easy feat even for established businesses.
Everyone is raising prices in line with their own cost increases, from semiconductor manufacturers to outsourced fabs and suppliers. At 10 to 40%, these increases are putting pressure on supply chains and businesses.
How many price increases will target markets absorb? How can we sustain production without significant margin pressure? These are the challenges facing manufacturers, who are stuck between a rock and a hard place right now.
There are a few solutions:
- Equivalents: Source equivalent components from different brands/makers/OEMs that meet size, power, specification, and design standards.
- Use an electronic components distributor: Distributors are the best-connected players in the industry, able to source hard-to-procure and shortage components thanks to relationships with critical decision-makers.
Prices will fizzle down, eventually
Although research published by Supplyframe says pricing challenges will remain through early 2023, they won’t last forever. Price rises should fizzle out towards the end of 2021 as manufacturers catch up to orders and reduce disruption.
If you are experiencing an electronic component shortage, we can help. Email us if you have any questions or call us on 01904 415 415 for a chat with our team.
25 August 2021
Automotive electronics market set to grow
With vehicles getting smarter, more connected and more autonomous, the automotive electronics market looks set to soar.
Future growth in numbers
Back in March, Precedence Research predicted the automotive electronics market would hit around US$ 640.56 billion by 2030.
Then, in July, Global Market Insights released research predicting the automotive electronics market would hit around US$ 380 billion by 2027.
Interestingly, measured across the same period, both research reports (which are independent) predict a similar growth pattern. Global Market Insights predicts a 6% CAGR, while Precedence Research predicts a CAGR of 7.64% over a 3-year longer period.
With two separate reports indicating significant annual growth, the automotive electronics market looks set to boom. But wait, there’s more.
A 9.3% CAGR is expected in the automotive electronics market by 2030, according to research by P&S Intelligence. They predict slightly less growth than Precedence Research to 2030, at US$ 615.3 billion (versus $640.56 billion).
There are approximately 1,400 chips in a typical vehicle today, which each chip housing thousands of components on a semiconductor wafer, creating the integrated circuits that power computing, memory and a host of other tasks.
Those are just the chips.
Cars have thousands of other electronic components, including passive, active and interconnecting electronic components, from batteries, sensors and motors, to displays and cameras. Oh, and everything is connected.
All told, a typical car today has more than 50,000 electronic components that enable features like in-car Wi-Fi, self-parking technology, adaptive headlights, semi-autonomous driving technology, keyless entry and powered tailgates.
However, cars are getter smarter and more advanced. Electronic components today make up around a third the cost of a car, which will increase over time as more sophisticated and greater numbers of components are used.
Smarter cars need more components
The future of cars involves electrification, autonomous and self-driving technologies, hyperconnectivity, Internet of Things, augmented reality, artificial intelligence, biometrics and a whole host of next-generation technologies.
How will these be enabled? With electronic components.
Let’s take electrification as an example. An electric car handbook will tell you an electric car has a motor, a battery, an on-board charger, and an Electronic Control Unit (ECU) that controls one or more of the electrical systems or subsystems in the vehicle. Together, these let you drive around, charge, and pop to the shops.
In-between these systems, are hundreds of thousands of electronic components that make them work. You see, an Electronic Control Unit is a single component, containing thousands of smaller components, each performing a critical role.
The automotive electronics market is set to soar because cars and other vehicles will need more components with electrification and next-gen technologies. Sometimes, things can be simple to explain, and this is one of those times.
The electronics industry is facing a global chip and electronic component shortage which is expected to last 2-3 years. As demand for automotive electronics soars, shortages look very likely for certain components like CPUs and memory.
The solution for many companies will be to use an electronics component distributor, to fill gaps in the supply chain and keep things moving.
Electronic component distributors like Cyclops can source hard-to-procure components because we have relationships with the best suppliers in the industry. Contact us today with your enquiries at firstname.lastname@example.org or call 01904 415 415.
07 April 2021
NXP Announces i.MX 9 and i.MX 8 processor line for Intelligent Multi-sensor Applications
NXP Semiconductors has announced a new line of edge processors that deliver a giant leap in performance and security at the edge.
As edge computing rapidly evolves around us and demand for edge computing soars, performance demands are increasing at an exponential rate. This requires a new approach to security, power consumption and performance. Existing edge processors offer a solution now but are not ready for the next generation of real-time data.
Technologies like machine learning, artificial intelligence, robotics, autonomous driving and next-gen wireless infrastructure all depend on the edge. NXP Semiconductors is meeting the challenge with new i.MX 9 and i.MX 8 processor lines.
i.MX 8ULP and i.MX 8ULP-CS
The ultra-low power i.MX 8ULP and i.MX 8ULP-CS (cloud secured) Microsoft Azure Sphere-certified processors have the EdgeLock secure enclave, a pre-configured security subsystem that simplifies complex security technologies and helps designers avoid costly errors. It automates the following security functions:
- Root of trust
- Run-time attestation
- Trust provisioning
- Secure boot
- Key management
- Cryptographic services
The i.MX 8ULP-CS is Microsoft Azure Sphere-certified with Microsoft Pluton enabled on EdgeLock for highly secure hardware. With Azure Sphere, it has chip-to-cloud security built in, enabling use in a wide range of applications.
Both i.MX processors utilise Energy Flex architecture, which delivers as much as 75% improved energy efficiency compared to previous generations.
They have heterogeneous domain processing and 28nm FD-SOI process technology, making them among the most advanced edge chips in the world. The processors have one or two 1GHz Arm Cortex-A35 processors, a 216MHz Cortex-M33 real-time processor and a 200MHz Fusion DSP for low-power voice and sensor hub processing.
Every Azure Sphere-certified i.MX 8ULP-CS device also gets ongoing OS and security improvements for over ten years.
The i.MX 9 series is NXP Semiconductors’ range-topping high-performance edge processor for intelligent multi-sensor applications.
The i.MX 9 debuts a new generation of processors that have an independent MCU-like real-time domain and dedicated multi-sensory data processing engines for graphics, image, display, audio and voice. The i.MX 9 series also features EdgeLock secure enclave, Energy Flex architecture and hardware neural processing.
The i.MX 9 is for the next generation of edge computing applications including machine learning and artificial intelligence. It’s the first NXP line to use the Arm Ethos U-65 microNPU which enables low-power machine learning.
Importantly, Azure Sphere chip-to-cloud security is enabled within the i.MX 9 line, providing a clear upgrade path from the i.MX 8 series.
EdgeLock secure enclave is the big ticket item of the new processor lines, combining complex security technologies into a single pre-configured platform. With device-wide security intelligence, it provides a simplified path to certification, enabling non-stop trusted management services and applications.
With the release of these new processors, organisations of any size can now pursue IoT development and real-time technologies with the confidence that NXP and Microsoft have laid out a foundation of security via Microsoft Azure. The low-power requirements and chip-to-cloud security deliver innovation in the right areas.
You can find out more about the processors here.
If you are looking for NXP parts contact us today! email@example.com
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