Showing posts tagged 'semiconductor'
13 October 2021
Electronic Component Shortage update
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 firstname.lastname@example.org or visit our website https://www.cyclops-electronics.com/.
06 October 2021
Rare earth metal prices explode
Prices for rare earth metals have exploded over the last 12 months, moving nearly 50% higher on average since March.
This development could push prices of electronics components higher than ever, as a perfect storm of expensive raw materials + limited production capacity + higher demand = rocketing prices.
As we are seeing with the global semiconductor shortage, fluctuations in supply chains ripple through the electronics industry.
Electronic component shortages have, in part, been caused by reduced mining quota for raw materials including rate earth metals. But the problem now isn’t a lack of mining, but the soaring demand for rare earth metals.
The high price reflects strong demand. Rare earth metals are used in most electronic components and devices, from integrated circuits to displays, vibration motors and storage, so it’s easy to see why demand is so strong.
For example, materials like neodymium and praseodymium used to make magnets have seen a 73% increase in demand in 2021. Holmium oxide used in sensors, terbium oxide used in displays and cobalt used in batteries have also seen increases.
Why have prices exploded?
China is the only country in the world with a complete supply chain for rare earth metals from mining, to refining, to processing. With over 55% of global production and 85% refining output, the world depends on them for rare earth metals.
In January, Beijing hinted at tightening controls for earth metal exports, triggering panic across the world and sending prices soaring.
For those of you who remember, rare earth prices exploded in 2011 when China’s export volumes collapsed. China cut export quotas of the 17 rare earth metals and raised tariffs on exports, sending prices soaring by more than 50%.
Talk about déjà vu!
Another factor for the price explosion is supply and demand. Even with China’s hints, demand for rare earth metals is outstripping supply. The world is using more electronics than at any time in its history, and rare earth metals are needed to make more of them.
It isn’t only relatively unknown materials like neodymium and praseodymium that are surging in price, but also more commonly known materials like tin, aluminium and copper, which have also surged in price in 2021.
So, in a nutshell, demand for rare earth metals is outstripping supply, and China (which has significant control over rare earth metals) has hinted at tightening exports, sending a shockwave through the supply chain.
The issue is bad and will take time to resolve. The United States is the second biggest producer of rare earth metals, and in February, President Joe Biden announced a review into domestic supply chains for rare earths, medical devices, chips and other resources, with a $30 million initiative to secure new supply chains.
Unfortunately for the world, China’s control of 55% of global production and 85% of refining output for rare earth metals means they control the market. Missteps, problems at home, and hints about tightening controls have already sent rare earth metal prices soaring, and it stands to reason they will continue creeping higher in the near-term.
22 September 2021
Causes of IC Shortage
There’s a serious shortage of integrated circuits affecting every corner of the electronics world. Discrete circuits, optoelectronics and sensors are also experiencing shortages, putting pressure on supply chains from top to bottom.
What are the causes of IC shortages? This article will explore the main causes, so that you can understand what’s going on.
The coronavirus pandemic reshaped demand for semiconductors, shifting automotive demand to device demand (car plants shut down, while demand for electronic devices soared with stay at home and remote working).
Now that automotive production is ramping back up, there aren’t enough ICs to go around, causing a shortage across all industry sectors.
The pandemic also caused short-term, unplanned plant shutdowns and labour shortages, reducing the number of ICs manufactured.
The logistics industry is still recovering from COVID-induced shutdowns and travel restrictions. While air and sea freight is running at good capacity, road transport is proving difficult across borders, creating supply constraints.
In 2020, air cargo capacity saw a 20% decline. In 2021, it’s back to normal, but you still have the problem of moving components on the ground.
In the UK, there is also a serious driver shortage underway that is affecting everything from electronic components to supermarket shelves.
The amount of time that passes between ordering semiconductors and taking delivery has increased to record levels. In July 2021, it surpassed 20 weeks, the highest wait time since the start of the year and eight days longer than June.
Longer lead times can be caused by a variety of factors, but in this case it’s caused by foundries running at capacity with no room for acceleration. Labour shortages and problems getting hold of materials are exasperating the problem.
A shortage of raw materials is causing big problems for semiconductor manufacturers, who can’t get the materials they need to meet demand. Shortages of raw materials and high raw material prices are combining to squeeze production.
The soaring price of raw materials is also increasing the prices of ICs, with some components seeing a yearly price increase up to 40%. These costs will eventually slosh back to consumers who will have to stomach higher prices.
Whether we’re talking about the communications, automotive or consumer electronics sector, IC stockpiling has exploded. The world’s biggest manufacturers have stockpiled huge quantities of components for themselves.
This ringfencing of components by nervous manufacturers eager to secure inventory takes a significant volume of components off the open market, squeezes the supply chain, and gives the biggest players an upper hand over everyone else.
For all their bad press, China make a lot of chips - around a billion a day. Their biggest chipmaker, SMIC, was hit by US sanctions in late 2020, eliminating SMIC chips from the US market. You’d think this would mean more chips for the rest of the world, but China recoiled and went defensive, keeping most of the chips for themselves.
US sanctions twisted the global supply chain out of shape, creating volatility in an industry that was already in turmoil from the pandemic.
15 September 2021
Chip Shortage causing car manufacturers to cut production levels
A week doesn’t pass without an announcement from a car manufacturer that they are cutting production levels. Idling shifts and even entire factories has become normal for an industry that thrives on maximising output.
Volkswagen, Ford, General Motors, Hyundai and Toyota have cut production levels to prioritise their most lucrative models. In some cases, plants have shut down for weeks at a time to allow supply chains to catch up to one another.
To understand how big this is, a 1-2 week plant shutdown will cost a car manufacturer millions of pounds at the very least. No manufacturer would willingly do this, but the global chip shortage is forcing them to.
Chip shortage in numbers
Just 53,438 cars rolled off assembly lines in the UK in July 2021, making it the lowest output in the month of July since 1956.
In June 2021, data from the Society of Motor Manufacturers and Traders (SMMT) showed that car production was down 52.6% on the same month in 2019, telling us that we’re a long way off reaching pre-pandemic levels.
According to research firm AlixPartners, the chip shortage will collectively cost the auto industry $110 billion in revenue in 2021 - a revised figure and an increase of 81.5% over the same firm’s figures in late January.
More telling figures come from Fitch Ratings, who estimate the chip shortage will cost automakers 5% of production. North America and Europe will be the hardest hit, with Asia and China coming in third and fourth respectively.
What’s happening with chips!?
The automotive sector has been hit harder than any other by the chip shortage due to cancelling orders for chips at the start of the pandemic.
Anticipating a slowdown that would last months, most car markers cancelled orders for chips. Semiconductor manufacturers filled order books with orders from companies making smartphones, laptops and other devices.
When the automotive sector bounced back sooner than expected, semiconductor manufacturers had hardly any capacity to meet demand. This has led to the situation today, where car makers can’t secure the inventory they need.
Now, there are not enough chips, foundries are running at 99% capacity and new foundries take years and billions in investment to set up.
Changing the production line for a chip costs tens of millions and takes months, labour shortages are causing a manpower crisis, and the pandemic is causing short-term factory shutdowns at foundries and fabless plants.
When will the global chip shortage end?
It will take at least five years for the global chip shortage to subside, assuming investment in new foundries begins in 2021/22. New factories are the only the way out of the shortage because demand for chips is only going to increase.
Opinions on when the shortage will end vary from early 2023 to 2025. The last 18 months has tested supply chains and wreaked havoc on production, but the automotive industry is experienced enough to cope with future problems.
When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence or quality issues, contact Cyclops Electronics for a fast response to your enquiries and a reliable on time delivery.
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 email@example.com or call 01904 415 415.
18 August 2021
Why are semiconductors so important to so many industries?
The semiconductor chip has done more to connect the world than any other technology, but why is it so important to so many industries?
Semiconductors are materials used to make semiconductor wafers, on which potentially millions of components are fabricated, to create an integrated circuit (IC), creating a single chip that can be used for computation or other tasks.
Semiconductors are important to so many industries because they are an essential electronic component, whether we are talking about the semiconductor material (silicon, silicon carbide) or the chips that perform tasks.
To understand why semiconductors are so important to so many industries, let’s take a step back and clarify what a semiconductor actually is.
What is a semiconductor?
A semiconductor is a material that partly conducts current, somewhere between that of an insulator and a conductor (hence the name semi-conductor).
A semiconductor chip is an integrated circuit (IC) formed on a wafer of silicon, consisting of the semiconductor material that manages the flow and control of current, and components like transistors and resistors to create the circuit.
When talking about semiconductors in relation to chips, we use the names “chips” or “semis’” because these names are more accurate for describing circuits laid down or grown to do computation or other tasks like memory.
Why are semiconductors so important?
In 1947, the first semiconductor transistor was made. Engineers quickly realised that manufacturing transistors out of silicon allowed them to fit on a microchip, which opened the gates to all the electronics you use today.
Without semiconductor chips, modern electronics would not exist. These inconspicuous, tiny components replaced tubes in electronics in the 1970s, laying the foundation for every electrical device used today, including the screen you’re looking at.
Today, all modern electrical devices use semiconductor chips, from home ovens to smartphones and cars. Billions of semiconductors are manufactured each year, and they are getting smaller and smarter with each generation.
Powering our smart, connected world
As we discussed earlier, semiconductor chips are single electronic components consisting of thousands or millions of electrical components, enabling functions like computation, memory, oscillation, switching, logic, amplification, and so on.
Without this single component with an integrated circuit, there would be no way to efficiently make the circuits we need to create smart, connected devices in their current form. Quite literally, chips are the reason you are reading this.
With an insatiable appetite for semiconductor chips, it’s a good job the material we use to make the wafers - silicon - is naturally abundant.
Today, most chips are built on silicon, which makes up 27.7% of the earth’s crust, or silicon carbide, a compound tweaked for performance.
However, our demand for chips is outstripping supply. There is a global semiconductor shortage under way affecting all industries, with the automotive industry hardest hit due to a perfect storm that has been building for years.
Electronic components distributors like us, Cyclops Electronics are helping supply meet demand, while the semiconductor industry battles to make more chips.
If you are having difficulty finding those hard-to-find and obsolete electronic components. Get in touch with our team today by emailing firstname.lastname@example.org or call 01904 415 415.
10 August 2021
Passive and Interconnecting Electronic Components market to display lucrative growth
The passive and interconnecting electronic components market is predicted to display lucrative growth across all regions over 2020-2025, with North America the dominant market due to the prominence of players in the country.
These predictions come from The Passive and Interconnecting Electronic Components market report from Market Study Report, which you can request a sample of here. The report delivers a rigorous analysis of the market, examining the main growth drivers and restraints, as well as opportunities for revenue cycles.
The passive and IEC markets are forecasted to experience a CAGR (compound annual growth rate) of 3.1% from 2020-2025, with the US market expected to reach $32.3 billion by 2025, up from $28.6 billion in 2020.
Key players in the industry include:
- API Technologies
- AVX Corporation
- ST Microelectronics
- 3M Electronics
- Fujitsu Component
- American Electronic Components
- Eaton Corp.
- Datronix Holding Ltd
As the world gets smarter and demand for passive and interconnecting electronic components increases, small players will also take a bigger role. Trade barriers caused by geography will need to be overcome to meet demand, fuelling an explosion in growth across all developed markets, from Europe to Asia Pacific.
What is fuelling growth?
While the report provides in-depth analysis of factors that will fuel growth, we don’t want to tread on its toes, so we’ll provide a simpler analysis.
The reason the passive and interconnecting electronic component markets are going to experience significant growth over the next several years is because of industry tailwinds and technological advancement. Given today’s technological innovation, it’s no wonder that demand for all types of electronic component is soaring.
Disruptive new technologies, rapid advancement in existing technologies and the adoption of smarter, more connected devices, is fuelling unprecedented demand for everything from passive components to chips.
For example, in 2021, manufacturing of passive components could see an 11% increase, but demand is likely to exceed 15%.
Making supply meet demand
There has been a lot of talk about how the next great technological cycle will fuel growth for the semiconductor industry, but it’s important to recognise that chips are nothing but silicon and metal without other components like passives and IECs.
While supply for some components like display drivers is ticking along, there is a global shortage for other components like active, passive and electro-mechanical components, putting manufacturers in a compromised position.
The shortage for some IECs and passive components is expected to last several years, so making supply meet demand will be a challenge in the near future.
To make supply meet demand, suppliers and manufacturers will need to partner with well-connected distributors. Electronic component distributors are the best-connected players in the supply chain, linking sellers with buyers and vice versa.
Sourcing and allocating shortage electronic components is something that we specialise in at Cyclops. We help source components that are impossible to find, helping to keep supply chains moving and manufacturing plants going.
With the passive and interconnecting electronic components market set to soar, planning is essential to make supply meet demand and capitalise on growth.
04 August 2021
Chips shortage limits auto production in Brazil and the rest of the world
“Never seen anything like it,” Tesla’s Elon Musk tweeted last month about the global chips shortage, “Fear of running out is causing every company to overorder - like the toilet paper shortage, but at epic scale.”
If you want a prime example of the chips shortage, look to Brazil.
In 2020, the automotive industry in Brazil was hit hard by chip shortages and the coronavirus pandemic. Approximately 1.61 million passenger cars were made in 2020, a decrease of over 34% compared to the following year.
2021 got off to a flier… then grounded
2021 got off to a much better start for Brazil, with 1.14 million passenger cars leaving the production line in in the first half of the year, a 57.5% increase compared to the same period last year. However, production has hit a ceiling.
Brazil's Association of Automotive Vehicle Manufacturers, ANFAVEA, has disclosed that because of chip shortages, Brazil missed its target for automotive production in the first half of 2021, and the numbers cited are startling.
According to ANFAVEA, some 100,000 to 120,000 passenger cars were prevented from entering production by the chips shortage. In June, only 166,947 passenger cars were made, the worst figures of any month in the last 12 months.
Manufacturing limitations created by the chips shortage have been compounded by the coronavirus pandemic. Brazil has seen 19.8m coronavirus cases with a 2.8% mortality rate, sadly resulting in over 500,000 deaths.
The biggest factories are struggling in Brazil
More than 20 plants in Brazil run by the likes of Volkswagen, Mercedes-Benz, General Motors, Nissan, Toyota, Renault, Volvo, Scania and Honda have shut down temporarily in 2021 because of the chips shortage and the pandemic.
At the beginning of June, Volkswagen halted operations at two Brazilian plants amid the chips shortage for 10 days. The company said, “A significant shortage of semiconductors is resulting in several supply bottlenecks.”
Then, in July, Hyundai Motor temporarily halted the operations of its Brazil plant due to the chips shortage. The closure was the first in the Piracicaba plant’s history, raising the alarm over chip shortages in the automotive sector.
What next for the Brazilian automotive sector?
Figures show that in the first half of 2021, the Brazilian automotive sector had a strong rebound on 2020. However, water has been thrown over the fire towards the middle of the year, due to chip shortages across the sector.
Local manufacturers expect to see some relief after August as manufacturing plants catch up, but manufacturers are uncertain about when the supply chain will normalise.
How’s morale among big companies? Sombre, to say the least.
Dell’s CEO echoes these sentiments, "The shortage will probably continue for a few years. Even if chip factories are built all over the world, it takes time."
So, whichever way we look, and whichever experts we ask, the global chip shortage is showing no signs of abating. For Brazil’s auto manufacturers, making supply meet demand will be the biggest test of the last few decades.
Need Electronic Components?
When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence, or quality issues, contact Cyclops Electronics for a fast response to your enquiries and a reliable on time delivery. Email Sales@cyclops-electronics.com or call 01904 415 415 today.
28 July 2021
What Shortage? How Electronic Component Distributors Make Supply Meet Demand
When buyers can’t find electronic components, they turn to distributors like us who can source scarce and obsolete parts.
Our experience has been tested to new extremes over the last several months due to the semiconductor and wider electronic components shortage. This shortage was years in the making but has been amplified by COVID-19.
It says everything about the state of the electronic components supply chain when Samsung, who make their own chips, don’t have enough chips. Shortages have affected brands like Samsung, Apple, Volkswagen and Nintendo not just in terms of supply, but also prices, which have skyrocketed in 12 months.
When the chips are down, prices go up.
Distributors are busier than ever
Cyclops Electronics, as well other distributors, have become more essential than ever in supply chains since the COVID-19 pandemic began.
It’s no exaggeration to say distributors like us are keeping many businesses going. We keep production lines going by sourcing scarce parts from around the world - parts that would be impossible to source without excellent connections.
We are seeing desperation from companies that have never experienced supply chain problems. We’re talking about global companies listed publicly.
The situation is so bad for some components that some companies are paying a 100% premium just to secure them. Supply and demand is driving fierce competition and bidding wars are not uncommon.
If these revelations shock you, consider this - the electronics components shortage isn’t expected to abate until late 2021 at least. By then, there should be more order to the chaos, but some industry experts expect it to persist longer.
For example, IBM has said the chip shortage could last 2 years.
A 2 year extension would extend the chip shortage to 2023 at least. This is likely to be the case for other components too, including memory, integrated circuits and display drivers. A huge number of companies will be affected.
Playing a crucial role in the supply chain
Distributors like us are able to source hard-to-procure components because we have rapport with the best suppliers in the industry. In other words, we have immense buying power, and we put this to use for our customers.
Another way we are playing a crucial role in the electronics components supply chain is the reduction of counterfeit components.
Counterfeiters are taking advantage of weakened supply chains, lapse quality control processes and inadequate reporting to flood the market with illegal components. This has affected thousands of buyers and will affect many more.
Our role in this is to deploy anti-counterfeiting technologies including a SENTRY machine, die testing and decapsulation testing to test the components we procure. This ensures the components we supply are genuine parts.
We provide industry-leading chip testing to catch counterfeit parts. We have ISO 9001:2015 certification and ESD qualified staff.
If you need to buy parts and the only way to get them is with a distributor, don’t rush in - make sure your distributor is as equally qualified as us first. If you need help, feel free to call us on 01904 415 415 for a chat with our experts.
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