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Showing posts tagged 'manufacturing'


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


17 November 2021

The tech industry is bracing for a potential shortage of passive electronic components

mmt

By now, everyone has heard of the global semiconductor shortage. Still, the tech industry is bracing itself for an altogether larger shortage of passive electronic components that could reduce manufacturing output across multiple categories.

Passive components do not generate energy but can store and dissipate it. They include resistors, inductors (coils), capacitors, transformers, and diodes, connecting to active elements in circuits. Passives are necessary for circuit architecture, so the shortage is bad news for the electronics industry as a whole.

The current state of the passive component shortage 

The truth is there has been a shortage of certain passive components since the coronavirus pandemic hit in 2020, particularly with multilayer ceramic capacitors (MLCCs), which can be difficult to get hold of in large quantities.

Certain diodes, transistors and resistors are also in shorter supply than they were in 2019, partly because of the pandemic and a shift in manufacturing investment for active components, which have a higher margin.

You also need to look at consumer trends (what people are buying). Smartphone and smartwatch sales are higher than ever, and smart ‘Internet of Things’ devices are growing in popularity rapidly, not to mention in availability.

These devices require a lot of passive components. For example, a typical smartphone requires over 1,000 capacitors. Cars are also huge consumers of passive components, with an electric car requiring around 22,000 MLCCs alone.

The trend for next-generation technology adoption is up across all categories, be it the Internet of Things, edge computing, semi-autonomous cars and 5G. Passive components are in more demand than ever at a time when supplies are under pressure.

Price rises are now inevitable 

The price for most passive components has risen by the largest amount in over a decade in 2021, caused by supply and demand economics and a price explosion for common materials like tin, aluminium and copper, as well as rare earth metals.

While some suppliers can afford to take a hit on profits, for most, raising prices is inevitable to ensure the viability of operations.

With higher component prices and greater shortages, it is more important than ever for companies to bolster their supply chains. Complacency is dangerous in today’s market, and no company is immune to disruption.

How to beat the passive components shortage 

The passive components shortage is likely to get worse before it gets better, but there are several ways you can bolster your supply chain:

  • Equivalents:Specifying equivalent passive components is a sound way to keep your supply chain moving. When a specific passive component isn’t available, an equivalent may be available that functions in exactly the same way.

  • Ditch outdated components:Outdated components have limited or no manufacturing output when discontinued. Upgrading to modern components that are manufactured in larger quantities can help you meet demand.

  • Partner with a global distributor:Global components distributors like us source and deliver day-to-day, shortage, hard-to-find and obsolete electronic components. We can help keep your supply chain moving in uncertain times. Contact us today SALES@CYCLOPS-ELECTRONICS.COM

Tags: the tech industry is bracing itself for an altogether larger shortage of passive electronic components that could reduce manufacturing output across multiple categories.


10 November 2021

Global silicon chip shortage will last until at least 2023

new electronic component image

How long will the global silicon chip shortage last? If you were to ask ten CEO's of leading technology companies, you'd probably get ten different answers.

However, there's one timeframe most CEO's quote…

2023 is the date CEO's are optimistic about 

Intel's CEO, Pat Gelsinger, has given us a realistic timeframe for the chip shortage to end - he says the chip shortage won't end until 2023.

"We're in the worst of it now; every quarter next year, we'll get incrementally better, but we're not going to have supply-demand balance until 2023," Gelsinger told CNBC.

Gelsinger's thoughts echo those of Glenn O'Donnell, a vice president research director at advisory firm Forrester, who says the chip shortage will last until 2022.

"Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023," O'Donnell wrote in a blog in March.

Daimler chairman Ola Källenius also believes the chip shortage could last until 2023.

"Several chip suppliers have been referring to structural problems with demand," Källenius told reporters during a roundtable event ahead of the Munich IAA car show. "This could influence 2022 and (the situation) may be more relaxed in 2023."

What will chip demand look like in 2022-2023?

In July, the CEO of STMicroelectronics provided insight into what we can expect in 2022-2023, "Things will improve in 2022 gradually, but we will return to a normal situation ... not before the first half of 2023," he said in an interview.

The global silicon chip shortage has led to car plants shutting down, paused manufacturing lines and delayed product launches. It isn't a short-term problem, and no one knows for sure when supply will start catching up with demand.

All industries and companies that use chips have been affected by the shortage - even Samsung, the world's biggest computer-chip manufacturer, has been affected by it, delaying the launch of several Galaxy and Note smartphones.

Most experts agree that 2022 will echo 2021, with moderate-extreme shortages of integrated circuits and chips, as well as certain active and passive components. Prices are also expected to rise in line with raw material costs.

2023 may be the year that supply starts meeting demand, but it will require the mass opening of foundries and factories. Investment in new plants and manufacturing lines is ongoing, with new fabs set to open in the next two years.

In 2023, we hope to see regular chip inventory levels and average delays of about three months to replenish components. At the moment, some components have delays over a year, and inventory supplies for chips are running low.

Keeping supply chains moving

The best way to keep supply chains moving is to partner with an electronic components distributor like us. We can source chips from around the world, tapping into stockpiles and inventory that isn’t available to the average company.

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 to chat with our team.

Tags: silicon chip intel chip shortage stmicroelectronics manufacturing delayed shortage integrated circuits raw material costs foundries factories


14 July 2021

Active Electronic Components Market Growing Demand

active

Active electronic component demand is soaring. The market is expected to grow by a compound annual growth rate of 4.8% during 2021-2026, fuelled by new technologies and faster and more globally available internet connectivity.

What’s driving it?

An explosion of new products with AI and IoT support and tailwinds like 5G are fuelling demand for active components.

Semiconductor devices, optoelectronic devices, and display technologies are significant applications. Examples include smart home appliances, virtual reality headsets, connected medical devices, and electronic ordering systems.

Here’s a non-exhaustive list of active components in high demand:

  • Diodes
  • Transistors
  • Integrated circuits
  • Optoelectronics
  • Sensors
  • Digital and analogue circuits
  • Batteries and power supplies
  • Generators
  • Vacuum tubes
  • CRT / LCD / VFD / TFT / LED displays

The increasing trends of the Internet of Things (IoT), automation, artificial intelligence, machine learning and virtual/augmented reality are expected to fuel demand for active electronic components for years to come.

Challenges lie ahead

This growing demand is not without its challenges. How will manufacturers get a hold of active electronic components if there isn’t enough to go around? Will geopolitical tensions affect supply? How will COVID-19 play a role in the future?

COVID-19

COVID-19 can create supply chain and market disruption and have a financial impact on firms and financial markets. If the virus persists in causing global disruption, this is likely to cause a shortage of active components in the future.

Geopolitical tensions

The US and China’s trade war in 2020 affected chip supplies around the world. Geopolitical tensions remain a risk in the future. Who knows if certain brands will be banned? It’s important that manufacturers stay in the loop to avoid supply chain problems.

Manufacturing bottlenecks

The world is advancing at a rapid rate and electronics components manufacturers are struggling to keep up. While investment in new factories is ongoing, demand may exceed manufacturing capacity, causing a shortage of components.

Price increases

Inflation is making everything more expensive. Add wildly fluctuating exchange rates and increasing demand for active components and you have the perfect recipe for price increases. This could cause a bidding war.

Active components and the future

The future is filled with more technology than you can imagine. Everything will be connected, including your car to your smartphone and your TV speakers to your smart home assistant (e.g. Alexa). Anything electronic can have a chip these days and you can bet innovators will find a way to make everything smart and connected.

With the active electronic components market predicted to increase in value significantly over the next five years, it is essential that companies have a reliable way to source the active components they need.

This is not a matter of beating the competition but a matter of staying operational amid impending shortages. The current chip shortage is a prime example of what can happen if a perfect storm of industry issues occurs.

If you need to source active electronic components, we can help. Email us if you have any questions or call us on 01904 415 415 for a chat with our team.

Tags: active electronic ai and iot support 5g semiconductor devices optoelectronic devices display technologies covid-19 geopolitical tensions manufacturing bottlenecks price increases


10 March 2021

Chipageddon is upon us

transistors

Semiconductors go unseen yet they are at the heart of all our electronics. When supplies run short manufacturing lines slow down and the availability of products is affected. Last year had several examples, some of which may have affected you.

AMD’s Radeon RX 6800 XT GPU was released in December but got nowhere close to meeting demand. Sony’s PS5 and Microsoft’s Xbox Series X sold out immediately and are rarer than hen’s teeth today. Even Apple admitted that the chip shortage affected sales of the iPhone 12 because they had to stagger product launches.

Then, near Christmas, the word “Chipageddon” was used by an automotive industry insider to describe the chip shortage affecting the automotive industry.

Chipageddon

It’s easy to overreact about things, but today’s chip shortage is worth getting in a sweat about. Supply and demand is faltering, and manufacturers are genuinely struggling to get the chips they need to make products.

Supply and demand is a basic economics model linking the relationship between the quantity of a commodity available and the quantity people want to buy to price determination. When supply exceeds demand, prices increase. When the opposite happens, prices decrease. It’s easy enough to understand.  

If you’re still with us, the chip shortage has had two main impacts:

  • Fewer chips are available
  • Prices for chips are increasing

This is a double whammy. It means manufacturers are making fewer products and paying more to make them. These costs DO get passed to you, the consumer. It’s the reason why you see random 10% increases in smartphone prices.

You also have the issue of foundries running at max capacity coupled to the low number of foundries that manufacture the newest wafers.

Industries worst hit

By far the worst-hit industry by a chip shortage is the automotive industry. The world's largest carmakers are facing a critical shortage of semiconductors at a time when demand is increasing, and cars are getting smarter.

Today’s cars have as many as 50 semiconductors that run a variety of systems. In a few years, this number is expected to increase to over 100. 60 million cars are produced each year worldwide. It means the industry needs 3,000,000,000 semiconductors, an enormous number whichever way you look at it.

Another industry hit hard by a chip shortage is consumer electronics. Smartphone manufacturers like Apple and Samsung are struggling to meet demand because there are not enough semiconductors to go around. Sony and Microsoft can’t manufacture as many game consoles as they need to because of lack of supply.

What’s the solution?

Chipmakers need to expand capacity and build more factories. Manufacturers need to consider alternatives to primary component suppliers. The issue is that chip fabrication plants take two years to set up and a low-quality chip can stop an expensive product from shipping. This is as much a quality demand issue as a supply one.

One way you can make sure you have the chips you need is to partner with an electronic component distributor like us. We specialise in the procurement and delivery of electronic components and parts for a wide variety of industries.

Call: 01904 415 415 

Email:sales@cyclops-electronics.com

Tags: semiconductors manufacturing automotive industry chipageddon sony microsoft


25 August 2015

Vishay Shuts Down Manufacturing Facility

Vishay Intertechnology, one of the world's largest manufacturers of discrete semiconductors and passive components, has reported a temporary production shutdown on its Tianjin manufacturing facility.  The manufacturing facility provides back-end packaging for some diode product lines.

Following the explosion the shockwaves resulted in broken windows and minor damage to exterior walls of the Vishay facility. Minor injuries to some employees were also reported but they are thankful that nobody was seriously hurt. Early indications, from Chinese officials, announce that the air quality in the area is 'acceptable', and Vishay expects to be able to bring the facility back into full production within the next few weeks, as it wants to maintain its focus on quality.

Vishay wishes to extend its heartfelt condolences to the Chinese people regarding the explosion which occurred on August 12, 2015 in the port of Tianjin.

Follow Cyclops Electronics on Twitter to keep up to date on the latest industry news.

Tags: vishay manufacturing shutdown tianjin explosion


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