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Showing posts tagged 'chips'


04 May 2022

semiconductors in space

flight-sky-earth-space

A post about semiconductors being used in space travel would be the perfect place to make dozens of space-themed puns, but let’s stay down to earth on this one.

There are around 2,000 chips used in the manufacture of a single electric vehicle. Imagine, then, how many chips might be used in the International Space Station or a rocket.

Despite the recent decline in the space semiconductor market, it’s looking likely that in the next period there will be a significant increase in profit.

What effect did the pandemic have?

The industry was not exempt from the impact of the shortage and supply chain issues caused by covid. Sales decreased and demand fell by 14.5% in 2020, compared to the year-on-year growth in the years previous.

Due to the shortages, many companies within the industry delayed launches and there was markedly less investment and progress in research and development. However, two years on, the scheduled dates for those postponed launches are fast approaching.

The decline in investment and profit is consequently expected to increase in the next five years. The market is estimated to jump from $2.10 billion in 2021 all the way up to $3.34 billion in 2028. This is a compound annual growth rate (CAGR) of 6.89%.

What is being tested for the future

In the hopes of ever improving the circuitry of spaceships there are several different newer technologies currently being tested for use in space travel.

Some component options are actually already being tested onboard spacecrafts, both to emulate conditions and to take advantage of the huge vacuum that is outer space. The low-pressure conditions can emulate a clean room, with less risk of particles contaminating the components being manufactured.

Graphene is one of the materials being considered for future space semiconductors. The one-atom-thick semiconductor is being tested by a team of students and companies to see how it reacts to the effects of space. The experiments are taking place with a view to the material possibly being used to improve the accuracy of sensors in the future.

Two teams from the National Aeronautics and Space Administration (NASA) are currently looking at the use of Gallium Nitride (GaN) in space too. This, and other wide bandgap semiconductors show promise due to their performance in high temperatures and at high levels of radiation. They also have the potential to be smaller and more lightweight than their silicon predecessors.

GaN on Silicon Carbide (GaN on SiC) is also being researched as a technology for amplifiers that allows satellites to transmit at high radio frequency from Earth. Funnily enough, it’s actually easier to make this material in space, since the ‘clean room’ vacuum effect makes the process of epitaxy – depositing a crystal substrate on top of another substrate – much more straightforward.

To infinity and beyond!

With the global market looking up for the next five years, there will be a high chance of progress in the development of space-specialised electronic components. With so many possible advancements in the industry, it’s highly likely it won’t be long before we see pioneering tech in space.

To bring us back down to Earth, if you’re looking for electronic components contact Cyclops today to see what they can do for you. Email us at sales@cyclops-electronics.com or use the rapid enquiry form on our website.

Tags: semiconductors space travel chips graphene national aeronautics space administration nasa gallium nitride satellites


30 March 2022

The process of making silicon semiconductors

IC Component

As the global shortage of semiconductors (also called chips) continues, what better time is there to read up on how these intricate, tiny components are made?

One of the reasons the industry can’t catch up with the heightened demand for chips is that creating them takes huge amounts of time and precision. From the starting point of refining quartz sand, to the end product of a tiny chip with the capacity to hold thousands of components, let’s have a quick walkthrough of it all:

Silicon Ingots

Silicon is the most common semiconductor material currently used, and is normally refined from the naturally-occurring material silicon dioxide (SiO₂) or, as you might know it, quartz.

Once the silicon is refined and becomes hyper pure, it is heated to 1420˚C which is above its melting point. Then a single crystal, called the seed, is dipped into the molten mixture and slowly pulled out as the liquid silicon forms a perfect crystalline structure around it. This is the start of our wafers.

Slicing and Cleaning

The large cylinder of silicon is then cut into very fine slices with a diamond saw, and further polished so they are at a perfect thickness to be used in integrated circuits (ICs). This polishing process is undertaken in a clean room, where workers have to wear suits that will not collect particles and will cover their whole body. Even a single speck of dirt could ruin the wafers, so the clean room only allows up to 100 particles per cubic foot of air.

Photolithography

In this stage the silicon is covered with a layer of material called a photoresist, and is then put under a UV light mask to create the pattern of circuits on the wafer. Some of the photoresist layer is washed away by a solvent, and the remaining photoresist is stamped onto the silicon to produce the pattern.

Fun fact – The yellow light often seen in pictures of semiconductor fabs is in the lithography rooms. The photoresist material is sensitive to high frequency light, which is why UV is used to make it soluble. To avoid damaging the rest of the wafer, low frequency yellow light is used in the room.

The process of photolithography can be repeated many times to create the required outlines on each wafer, and it is at this stage that the outline of each individual rectangular chip is printed onto the wafer too.

Layering

The fine slices are stacked on top of each other to form the final ICs, with up to 30 unique wafers being used in sequence to create a single computer chip. The outlines of the chips are then cut to separate them from the wafer, and packaged individually to protect them.

The final product

Due to this convoluted, delicate process, the time take to manufacture a single semiconductor is estimated to take up to four months. This, and the specialist facilities that are needed to enable production, results in an extreme amount of care needing to be taken throughout fabrication.

If you’re struggling to source electronic components during this shortage, look no further than Cyclops Electronics. Cyclops specialises in both regular and hard-to-find components. Get in touch now to see how easy finding stock should be, at sales@cyclops-electronics.com.

Tags: shortage semiconductors chips silicon ingots slicing and cleaning photolithography layering


09 March 2022

What is the Internet of Things?

pexels-photo-599982

EveryThing

In terms of IoT, a ‘Thing’ is anything that can transfer data over a network and can have its own IP address. They are most often ‘smart’ devices, that use processors or sensors to accumulate and send data.

These devices have little-to-no need for human interaction, except in cases where the smart device is controlled by a remote control or something similar. Due to the low cost of electronic components and wireless networks being readily available, it’s possible for most things to become, well, Things.

Technically, larger items like computers, aeroplanes, and even phones, cannot be considered IoT devices, but normally contain a huge amount of the smart devices within them. Smaller devices, however, like wearable devices, smart meters and smart lightbulbs can all be counted as IoT items.

There are already more connected IoT devices than there are people in the world, and as more Things are produced this progress shows no sign of slowing.

Applications of IoT

The automation and smart learning of IoT devices has endless uses and can be implemented in many industries. The medical industry can use IoT to remotely monitor patients using smart devices that can track blood pressure, heart rate and glucose levels, and can check if patients are sticking to treatment plans or physiotherapy routines.

Smart farming has garnered attention in recent years for its possibly life-saving applications. The use of IoT devices in the agricultural industry can enable the monitoring of moisture levels, fertiliser quantities and soil analysis. Not only would these functions lower the labour costs for farmers substantially but could also be implemented in countries where there is a desperate need for agriculture.

The industrial and automotive industries also stand to benefit from the development of IoT. Road safety can be improved with fast data transfer of vehicle health, as well as location. Maintenance could be performed before issues begin to affect driving if data is collected and, alongside the implementation of AI, smart vehicles and autonomous cars could be able to drive, brake and park without human error.

What’s next?

The scope of possibilities for IoT will only grow as technology and electronics become more and more accessible. An even greater number of devices will become ‘smart’ and alongside the implementation of AI, we will likely have the opportunity to make our lives fully automated. We already have smart toothbrushes and smart lightbulbs, what more could be possible in the future?

To make it sustainable and cost-effective, greater measures in security and device standardisation need to be implemented to reduce the risk of hacking. The UK government released guidelines in 2018 on how to keep your IoT devices secure, and a further bill to improve cyber security entered into law in 2021.

If you’re looking for chips, processors, sensors, or any other electronic component, get in touch with Cyclops Electronics today. We are specialists in day-to-day and obsolete components and can supply you where other stockists cannot.

Contact Cyclops today at sales@cyclops-electronics.com. Or use the rapid enquiry form on our website to get fast results.

Tags: iot medical industry smart farming accessible chips processors sensors electronic component


02 March 2022

Could Graphene be used in semiconductors?

Graphene

A new discovery

Graphene was first isolated at the University of Manchester in 2004. Professors Andre Geim and Kostya Novoselov were experimenting on a Friday night (as you do) and found they could create very thin flakes of graphite using sticky tape. When separating these fragments further, they found they could produce flakes that were one atom thick.

Geim and Novoselov were awarded the Nobel Prize in Physics for their ground-breaking experiments in 2010, and since the two had first identified the material since the 60s it had been a long time coming.

Despite its thinness Graphene is extremely strong, estimated to be 200 times stronger than steel

Is silicon outdated?

Semiconductors are inextricably linked to Moore’s Law, which is the principle that the number of transistors on a microchip doubles every year. But that observation Intel co-founder Gordon Moore made in 1965 is now losing speed.

Silicon chips will very soon reach their limit and will be unable to hold any additional transistors, which means that future innovation will require a replacement material. Graphene, with its single-atom thickness, is a contender.

In 2014 hardware company IBM devoted $3 billion to researching replacements for silicon as it believed the material would become obsolete. The company said as chips and transistors get smaller, as small as the current average of 7 nanometers (nm), the integrity of silicon is more at risk.

IBM revealed its new 2nm tech last year, which can hold 50 billion transistors on a single silicon chip, so the material is not going obsolete just yet.

Disadvantages

Graphene is nowhere close to being a replacement for silicon, it is still in the development stage and the cost of implementing it into supply chain would be extensive. A lot more research and adjustment is required, and it would have to be introduced step by step to avoid prices skyrocketing and supply chains breaking down.

Graphene is not the only contender to be the replacement for silicon either. Carbon nanotubes are fighting for prominence, and other 2D materials like molybdenum disulfide and tungsten disulfide are also vying for the position.

Another disadvantage of Graphene is that there is no bandgap, which means the semiconductor can’t be switched off. The possibly jagged edges of the material could also pierce the cell membranes which may disrupt functions.

Other applications

Thanks to its 2D properties Graphene is also being studied for its potential uses in other areas. In relation to semiconductors there has been research from Korea on the uses of graphene as a filtration device for semiconductor wastewater. The oxide-based nanofiltration membranes could remove ammonium from the wastewater created by semiconductor production so it can then be recycled. As a wider application of this Graphene could be used as a filtration device for water or to remove gas from a gas-liquid mixture.

Graphene is also being researched for its uses in the biomedical field, which include being a platform for drug delivery, bone tissue engineering, and ultrasensitive biosensors to detect nucleic acids. Graphene has other sensor-based uses, because the sensors can be made in micrometre-size they could be made to detect events on a molecular level, and could be of use in agriculture and smart farming.

There is a possibility Graphene could be combined with paint to weather-proof or rust-proof vehicles and houses, and to coat sports equipment. It also could have potential within the energy field for extending the lifespan of lithium-ion batteries.

When can we expect change?

Consultation company McKinsey estimated there would be three phases to the implementation of Graphene, none of which have begun just yet. Phase one would be to use Graphene as an ‘enhancer’ of existing technology, and will simply improve other devices by extending the lifespan or improving the conduction. This phase is estimated to last for ten years, after which phase two will begin. In this step graphene will become a replacement for silicon and will be the next step in the improvement of semiconductors and electronics. After 25 years we can expect the next step in graphene applications, things we can only dream of now.

In the meantime, people will still be using silicon-based semiconductors for quite a while. If you’re on the lookout for chips, or any other day-to-day or obsolete electronic components, contact Cyclops today at sales@cyclops-electronics.com, or use the rapid enquiry form on our website.

Tags: graphene silicon chips transistors ibm obsolete supply chain semiconductor semiconductor wastewater.


16 February 2022

The European Chips Act and its impact on electronic component sales

European Union flag

Semiconductors are vital for our day-to-day life. They are in all the electronics you own but are also in your kitchen appliances, your car, your electric shower and many more. But what if we lost access to these components?

The huge reliance on imported semiconductors was made abundantly clear last year. Europe’s current share of the global semiconductor market is only about 10%, and the continents is otherwise dependent on supply from abroad.

The need for independence and autonomy in the European chip market has been made very apparent due to factors like Brexit and COVID-19.

The European Chips Act was first mentioned in the EU’s 2021 State of Union Letter of Intent, calling the act a key initiative for 2022. The EU created the Industrial Alliance for Processors and Semiconductor Technologies alongside it, to plan and oversee progress on the act.

One of the aims of the alliance is to increase Europe’s share in global chip production to 20% by 2030, but they will first have to identify issues with the market and map out a way to improve design and production.

During the ‘State of the World’ Special Address by European Commission president Ursula von der Leyen on January 20, the chips act was mentioned once again, and they announced draft legislation for the chips act is due in February of this year.

The European Commission president said that there would be five steps taken to improve the chip sector, and that they would focus on research first, then design and manufacturing. After these there would be an adaptation of state aid rules to increase provisions in case of shortage.  Lastly, she said the EU would work to support smaller, innovative technology companies.

In 2020 the United States accounted for the largest share in the semiconductor industry, with 47%. Following the US was South Korea with 20% of the market. China’s share has also increased quickly in recent years, putting it narrowly behind Korea. Despite Japan previously having a larger share in the market, they are currently on equal footing with Europe with a share of around 10%.

Despite no longer being a member of the EU, and therefore not directly signing the Chips Act, the UK could also have the potential to increase its standing in the global semiconductor race.

According to some UK-based chipmakers, the country has an advantage in the area of research and development. If research facilities like the University of Manchester were given the right attention and funding, they could develop sustainable resources like graphene to replace mined silicon in processors.

The UK electronics sector will always be considerably smaller than huge countries like China and America, but with significant investment they would have the ability to make a difference in the current chip shortage. And Cyclops is a perfect example of a smaller company making a big difference.

Cyclops is an electronic component distributor with a wealth of contacts from all over the world. With unrivalled stock and suppliers, Cyclops will put you ahead of your competitors. Contact us today at sales@cyclops-electronics.com.

Tags: electronics electronic components european chips act global chip production graphene silicon


10 February 2022

Latest electronic component factory openings

Factory

We’ve all heard about the shortages in standard components like semiconductors and chips. Cars, phones and computers, items we use every day, are no longer being produced at the speedy rate we’ve come to expect. The cause of this shortage is, in part, due to the COVID-19 pandemic.

To combat this shortage many electronic component manufacturers have announced the opening or development of new factories. This is especially noticeable in Europe and America, where production has often been outsourced to Asia in the past.

So who are the latest companies expanding operations, and how much are they spending? Check out our quick run-down of factories and when they should open:

Company: Intel

Location: Ohio, USA

Product: Chips

Completion date: 2025

Cost: $20 billion (£14.7 billion)

The latest, and possibly greatest, announcement on our list comes from Intel. The corporation revealed in January that they would be committing to building two chip manufacturing plants in New Albany, Ohio. The move is said to be due to supply chain issues with Intel’s manufacturers in Asia, and should boost the American industry with the creation of at least 3,000 jobs. Construction should begin this year.

Company: Samsung Electronics

Location: Texas, USA

Product: Semiconductors

Completion date: 2024

Cost: $17billion (£12.5billion)

The household name announced late last year that they would begin work on a new semiconductor-manufacturing plant in Taylor, Texas. The Korean company stated the project was Samsung’s largest single investment in America, and is due to be operational by the middle of 2024.

Company: Infineon

Location: Villach, Austria

Product: Chips

Completion date: 2021

Cost: 1.6 billion (£1.3 billion)

After being in construction since 2018, Infineon’s Austrian plant became operational in September last year. The chip factory for power electronics, also called energy-saving chips, on 300-millimeter tin wafers began shipping three months ahead of schedule in 2021, and its main customer base will be in the automotive industry.

Company: Northvolt

Location: Gdańsk, Poland

Product: Batteries

Completion date: 2022

Cost: $200 million (£148 million)

The Swedish battery manufacturer is expanding its operations with a new factory in Poland. While initial operations are supposed to begin this year producing 5 GWh of batteries, it hopes to further develop to produce 12 GWh in future. Northvolt has also just begun operations at its new battery factory in Skellefteå in Sweden.

Company: Vingroup

Location: Hà Tĩnh, Vietnam

Product: Batteries

Completion date: 2022

Cost: $174 million (£128 million)

The Vietnamese electric vehicle manufacturer is due to start production at its new factory later this year, where it will produce lithium batteries for its electric cars and buses. The factory will be designed to produce 10,000 battery packs per year initially, but in a second phase the manufacturer said it will upgrade to 1 million battery packs annually. VinFast, a member of Vingroup, is also planning on expanding operations to America and Germany.

Company: EMD Electronics

Location: Arizona, USA

Product: Gas and chemical delivery systems

Completion date: 2022

Cost: $28 million (£20.7 million)

The member of the multinational Merck Group is expanding operations with the construction of a new factory in Phoenix, Arizona, to manufacture equipment for its Delivery Systems & Services business. The factory is due to be operational by the end of the year, and will produce GASGUARD and CHEMGUARD systems for the company.

A bright future

These electronic component factory openings signal a great increase in business, and will aide in the easing of the component crisis. But it will take a while for these fabs to be operational.

Can’t wait? Cyclops is there for all your electronic component needs. We have 30 years of expertise, and can help you where other suppliers cannot. Whether it’s day-to-day or obsolete electronic components, contact us today at sales@cyclops-electronics.com, or use the rapid enquiry form on our website.

Tags: electronic component factory openings shortages semiconductors chips intel chip manufacturing supply chain issues samsung electronics infineon chip factory power electronics northvolt vingroup lithium batteries vinfast emd electronics ga


19 January 2022

How Can Companies Combat the Electronic Components Shortage?

incoterms

Electronic components shortages show no signs of abating, fuelled by growing demand for electronics, limited availability of raw materials, soaring manufacturing prices and lingering COVID-19 disruptions.

Shortages have hindered manufacturers since 2018, but things came to a head in 2020 with the COVID-19 pandemic disrupting supply chains.

The pandemic created an imbalance in supply chains, with demand for many components, from chips to actives and passives, outstripping supply. The question is, how can companies combat the electronic components shortage?

Partner with a distributor 

Electronic component distributors occupy a unique position in the supply chain, representing the manufacturer and customer. Distributors work for both parties to move components up and down the supply chain.

The benefit of working with a distributor is that your company will be in the mix for components not available through traditional channels.

For example, we specialise in the procurement and delivery of electronic components and parts for a wide variety of industries from the world's leading manufacturers. We can help you beat allocation challenges and long lead times.

Diversify suppliers

Diversity is the key to strengthening your supply chain. You need multiple sources for electronic components. It's a good idea to have retail and distribution channels, so you have several routes should one supplier channel fail.

Diversity can also be found in geography. A supplier in your home country is essential, but so are suppliers close to the manufacturing source.  

Expand storage capabilities 

If your company can expand its storage capabilities for essential components, this is the simplest way to combat shortages. By storing large quantities of components, you create a supply separate from the chain.

The risk with expanding storage is procuring more components than you need, resulting in oversupply problems that incur heavy losses.  

Source equivalent components  

When components are unavailable, you can specify equivalents that meet your performance and financial specifications. Equivalent components perform the same job as your original components, but another company makes them.

A simple example is Samsung, which uses its own Exynos chip or a QUALCOMM chip in the same smartphone model depending on where the smartphone is sold.

Visibility and proactive planning 

Supply chains are complex beasts that require visibility to manage. Monthly stock updates are no longer sufficient; to combat shortages, you need real-time supplier updates and an inventory catalogue to keep track of supply.

You can proactively plan component shipments and tap into price dips and new inventory when you have visibility over total supply.

Predict obsolescence

When electronic components become obsolete, manufacturers who haven't planned for it scramble to find components that will work. This inevitably creates bottlenecks in the supply chain as many big companies compete for orders.

Obsolescence is predictable because all electronic components have a run date, and manufacturers update lifespans with inventory cataloguing. You can avoid shortages and soaring prices for rare parts by predicting obsolescence.  

Have shortages? Speak to us

We're here to help you deal with electronic component shortages. Contact us here.

Tags: raw materials chips actives passives electronic components shortage electronic component distributors supply chain essential components combat shortages equivalent components


08 December 2021

Semiconductor Supply Chain Will Remain Vulnerable Without Robust Investment in Advanced Packaging

component shortage

new U.S. study has found that the advanced semiconductor packaging supply chain needs strengthening to meet the increasing demand for chips.

According to the report, without robust federal investment, the semiconductor supply chain in the U.S. faces an uphill battle to meet demand.

The study also highlights the crucial role of advanced packaging in driving innovation in semiconductor designs. At present, most of the chips in the U.S. are sent abroad for packaging and assembly into finished products. By moving packaging to North America, the entire electronics ecosystem can be improved.

“Semiconductor chips are critically important, which is why IPC supports full funding for the CHIPS for America Act. But chips can’t function on their own. They need to be packaged and interconnected with other electronic components to power the technology we all rely on, from cell phones to automobiles and beyond,” said John Mitchell, IPC president and CEO. “The data in this report shows that North America is well behind Asia in the advanced packaging of chips and in other key parts of the electronics manufacturing ecosystem.”

The big players in the U.S. include Applied Materials, Amkor Technology, Ayar Labs, Lam Research, Microsemi Semiconductor and KLA-Tencor Corporation. These companies have seen unprecedented demand for semiconductor packaging, with growth predicted to rise as the world becomes smarter and more connected.

Other report findings 

The study also found that while the U.S. can design cutting-edge electronics, it lacks the capabilities to make them. This is creating an overreliance on foreign companies, including companies in China, creating considerable risk.

Looking at the most recent data, the study highlights that North America’s share of global advanced semiconductor packaging production is just 3 per cent. In other words, at present, the U.S. is incapable of assembling its own chips.

The study concludes that the U.S. also needs to invest in developing and producing advanced integrated circuit substrates. Advanced integrated circuit substrates are crucial components for packaging circuit chips. Currently, the U.S. has nascent capabilities, putting it behind Europe, China and most other countries.

What can we deduce from the report? That the U.S. is behind in most aspects of semiconductor packaging. Decades of low investment and overseas partnerships have led to a manufacturing ecosystem devoid of domestic talent.

“The findings of this report make clear that, as a result of decades of offshoring, the United States’ semiconductor supply chains remain vulnerable, even with the new federal funding that’s expected,” says Jan Vardaman, president and founder of TechSearch International and co-author of the report. “It’s critical that the U.S. government recognises and responds to industry needs on these systemic vulnerabilities, particularly integrated circuit substrates, where domestic capabilities are severely lacking.”

As the U.S. comes to terms with its poor manufacturing ecosystem, China is ramping up assembly plants. In the face of increasing competition, the U.S. must focus on domestic investment in the near and medium-term. Without robust investment, they could fall further behind and lose out to their biggest competitors.

Tags: semiconductor demand chips supply chain electronics electronic components


27 October 2021

Why is chip sovereignty so important?

chip

The US and EU are planning for chip sovereignty, aiming to defend domestic chip supplies and move manufacturing back home.

At first glance this is a tall order, considering most chips are made in China and China controls 55% of rare earth metal production, but it is nether the less crucial to ensure that the Western world has access to the chips it needs.

The need for chip sovereignty

As the electronics industry battles on with chip shortages, we are seeing car plants cut production and companies delay product launches.

These are only a few examples of measures applied like sticky plasters over supply chains that have been bleeding for years.

We are in a situation where electronic components manufacturers are running at 99-100% capacity. Demand has soared for all types of components, from chips and memory to diodes and displays, squeezing supply chains.

Quite simply, demand is outstripping supply.

Many of the problems in the supply chain are geopolitical and logistical in nature, so by moving manufacturing back home, nations like the US and the EU will be able to control the supply chain (or most of it) and make supply meet demand.

What’s happening?

The EU will legislate to push for chip sovereignty with the forthcoming “European Chips Act”. It aims to stop European countries from competing with each other for chips, instead having them work together to compete globally.

The US isn’t legislating for chip sovereignty, but the Biden administration used its first budget proposal to Congress to call for domestic funding to fight semiconductor shortages, with figures up to $50 billion being touted.

The UK is at odds with the US and EU with no chip sovereignty in sight.

Simply put, the UK is selling off chip firms, with $42 billion sold since 2010 (figures from US research). For example, In July, the UK’s largest chip plant was acquired by Nexperia - a Dutch firm wholly owned by Shanghai-based Wingtech.

This raises concerns over the future of UK chip manufacturing. Industry funding is seriously lacking too, putting the UK firmly behind the US and EU.

Companies are a successful case study 

As countries continue to struggle to meet demand for chips, some companies have taken matters into their own hands.

Apple produces their own chip called the M1 for the MacBook Air and iMac, and Google is doing the same with the Tensor chip, used in the Pixel 6 smartphone.

By moving away from Intel and Qualcomm respectively, Apple and Google have taken greater control over their supply chains, cutting out many geopolitical and logistical issues and unlocking greater pricing power.

With the global chip shortage showing no signs of abating and rare earth metal prices soaring, supply chains are only going to get squeezed more in the near future.

Chip sovereignty will be important for nations to meet demand and reduce reliance on China, Taiwan, and other countries a very long way away.

However, while the EU legislates for chip sovereignty, and the Biden administration pushes Congress for domestic chip funding, the UK continues to sell off chip firms to foreign investors. This will bite down hard when chip imports take a hit.

Tags: chip sovereignty china rare earth metal chip shortages chips memory diodes displays supply chain european chips act


13 October 2021

Electronic Component Shortage update

istockphoto-1206098096-612x612

The ongoing electronic component shortage is one of the biggest challenges global supply chains face today, with demand for many components, from chips to actives and passives, well and truly outstripping supply.

A lot has happened in the last month, with new research and analyst insights pointing to when demand might ease (hint: it won’t be this year).

Here’s your latest electronic component shortage update:

Chip lead times hit all-time high

According to Susquehanna Financial Group, chip lead times hit an all-time high of 21-weeks in September, up from 20.2 weeks in August and 18 weeks in July. However, in a research note, Susquehanna analyst Chris Rolland said that while lead times for some chips got worse, lead times for others like power management chips saw relief.

Gartner says global chip shortage will persist until Q2 2022

Gartner predicts the global semiconductor shortage will persist through Q1 2022 but recover to normal levels by the second quarter of 2022. They rate the current shortage as moderate and the shortages of early 2021 as severe.

Chipmakers should brace for 'oversupply' in 2023

Analyst firm IDC predicts that the global chip shortage may well turn into an oversupply situation in 2023, sending prices diving. They say the industry will see normalisation by the middle of 2022, with a potential for overcapacity in 2023.

EU pushes for chip sovereignty

The EU will legislate for chip sovereignty with the forthcoming “European Chips Act”, bringing together the EU’s semiconductor research, design, and testing capabilities, so that EU countries can make demand meet supply as one nation. “Europe cannot and will not lag behind,” the EU said in a statement on the Chips Act.

Ford Europe predicts chip shortages could continue to 2024

In an interview with CNBC, Ford Europe chairman of the management board Gunnar Herrmann estimated the chip shortage could continue through to 2024. Herrmann also revealed a new company crisis in raw materials. “It’s not only semiconductors,” he says, “you find shortages or constraints all over the place.”

Tesla's China output halted on chips shortage

Tesla temporarily halted some output at its Shanghai factory for four days in August due to the chips shortage, shutting part of the production line for electronic control units (ECUs), a small but significant action that cost it millions in revenue.

New forecast says chip shortage to cost car industry $210 billion

The total estimated cost of the chips shortage to the car industry keeps rising, with a new report from AlixPartners predicting a global cost of $210 billion. This is nearly double what their first report predicted in May ($110 billion).

Counterfeit chips penetrating the supply chain

As a result of the chips shortage, some manufacturers are turning to riskier supply channels, leaving themselves vulnerable to counterfeits. As ZDNet reports, this puts low-volume manufacturers whose supply chains are less established at risk.

If you are worried about counterfeits in your supply chain, read our 8 Step Guide To Buying Electronic Components With Confidence and Avoiding Counterfeits.

If you are struggling to find those hard to find and obsolete components. Contact Cyclops Electronics today. Call 01904 415 415, email sales@cyclops-electronics.com or visit our website https://www.cyclops-electronics.com/.

Tags: electronic component shortage global supply chains chip lead times semiconductor shortage chip sovereignty ford tesla alixpartners counterfeit chips


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