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Showing posts for August 2022


25 August 2022

Price hikes in the electronics industry

pexels-monstera-6289026

Chip prices will continue to increase, despite some component lead times improving. This is due to inflation, labour shortages, and scarcity of raw materials, among other things.

Intel was the latest company to announce price increases, which it will supposedly introduce at the end of this year. It joins firms including TSMC, Samsung, and Texas Instruments in raising the cost of its products.

As has become very clear, the pandemic contributed to supply shortages the world over. However, there have also been issues with labour shortages, material sourcing and the increasing costs of everything.

Reverse psychology?

Processors are increasing in price at Intel and other companies. It has been suggested that this actually may be due to oversupply. If the cost of the components is increased vendors are more likely to buy the stock before it occurs. As they stock up, Intel’s supply levels will decrease. This may lead to shortages in the long-term.

These increases are due to be introduced at the end of 2022, but people are suspicious it may happen sooner. If prices are instead increased in autumn, they can be discounted for events like Black Friday and Christmas.

War and price

Inflation is causing the price of materials to increase also, which inevitably would be passed down the supply chain. The price of raw materials was always going to increase over time, but the conflict in Ukraine has exacerbated this. Gases like neon, which is used in semiconductor production, is almost wholly (70%) sourced by Ukraine. Similarly, 40% of krypton gas is also from Ukraine, which is in conflict with Russia.

Aside from these materials, the price of lithium, cobalt and nickel, used for EV batteries, is also rising. The EV industry already had price hikes when the pandemic began, when the chip shortage took its toll. Now, following the 15% increase in 2021, automakers are facing another potential price increase.

Expansion

One of the largest players in the industry, TSMC, announced its price increases would take place in 2023. Despite not being as severe as first speculated, the 6% price increase will be enough that customers will notice.

Aside from the cost of raw materials, electricity and labour expenses, TSMC is also expanding. To fund this expansion it is increasing the price of fabrication.

Could we have stopped it?

Years before the pandemic, as far back as 2017, there were signs that a shortage was on its way. New technologies were mounting and other geopolitical difficulties were afoot. Even then, the best way to avoid this would have been to redesign the tech and improve the fabrication process. This would have been a time-consuming and expensive process, and whenever it happened it would result in delays and losses.

Conclusion

The amalgamation of all these factors will lead to lasting price increases for electronic components. Even if these prices are discounted in peak times like Black Friday or Christmas, suppliers will still have to deal with inflation and material shortages.

The expansion plans of some of the industry’s big players, and the cost of the tech to sustain them will also lead to price increases. How long the effects of these will last, we’ll have to wait and see.

Tags: chip prices inflation labour shortages raw materials tsmc samsung texas instruments supply chain lithium cobalt nickel ev batteries


24 August 2022

Optoelectronics

pexels-wilson-vitorino-2177473 (1)

Intro

Optoelectronic devices are products relating to the detection or creation of light. Chances are you deal with optoelectronics quite often, whether it’s in the form of LEDs in remote controls, solar panels, or fibre optic broadband.

Optoelectronic devices

A lot of markets utilise optoelectronics, namely military, consumer and industrial.

Laser radars, optical sonar systems, night vision equipment that uses infrared are all integral applications of optoelectronics for the military. There is also optoelectronics tech utilised for communication systems, both in military and consumer products.

Optoelectronics all work on the principle of the photovoltaic effect. This is when electrons are ejected from the material, creating electrical signals. This can also work the opposite way when components can use electricity to generate light.

It can only detect or emit certain waves of electromagnetic radiation, usually either visible light or near-infrared (NIR).

Advantages

The utilisation of optoelectronic components in the satellite industry has meant advancement in design. Satellite-to-satellite communication could one day happen with lasers. Solar cells also convert solar energy into electrical power, which could be the power source for large satellites one day.

Optoelectronics is already integral to the communications industry. Optical fibre communication systems is sometimes called one of the “greatest engineering achievements of the past century”. Need I say more? Well, I will. Optoelectronics was at the root of both high-quality voice communication and the internet. If that doesn’t prove how advantageous it is I, don’t know what will.

Disadvantages

Optoelectronics are temperature sensitive. As a result, at extreme temperatures components and circuits are at risk of damage. For applications including CMOS sensors, digital light processors and optical transceivers, a thermoelectric cooler has to be implemented.

Precise alignment is needed for coupling, too, as well as the difficulties that come with integrating optoelectronic devices on a substrate. All of these are potential deterrents from using the devices.

Market predictions

In 2020 the market was valued at $5.14 billion, increasing to $9.83 billion by 2026 at a 10.25% CAGR.

The surge is, in part, predicted due to the increase in electric vehicles (EVs) in production, which is forecast to continue. LED displays are now more common than ever, with even wearable tech featuring high-definition screens.

According to Market Insight Reports optoelectronics market expected to grow at a CAGR of 10.25% over the forecast period of 2019 to 2024.

As with many areas of electronics, the possibilities for advancement are endless. Especially in relation to satellites, the future may hold great things.

Cyclops has a vast stock of optoelectronic components, and can source any other components you need too! Too hear how Cyclops could help you, contact us on sales@cyclops-electronics.com, or call us on (+44) 01904 415 415.

Tags: optoelectronic devices laser radars optical sonar systems night vision equipment satellite industry electric vehicles led displays


17 August 2022

PCB assembly

component shortage

Circuit boards, Assemble!

We’re not quite the Avengers, but we do know a thing or two about assembly.

As an electronic component supplier, Cyclops works to get customers the electronic components they are looking for. Further down the line, manufacturers construct the printed circuit boards (PCBs) featuring our sourced components.

The assembly of a PCB is a delicate and painstaking process. Just one millimetre of misalignment could mean failure of the whole board. Here’s a brief run-down of what’s involved.

Applying solder paste

The first step in the assembly of a PCB is applying a layer of solder paste. The PCB is overlayed with a stencil, and the solder paste is applied over this. The right amount must be used, as this is spread evenly across the openings on the board.

After the stencil and applicator are removed the PCB will be left and moves on to stage two.

Pick and place

The automated placement of the surface mount devices (SMDs) is done by a ‘pick and place’ robot.

The pick and place machine will have a file containing all of the coordinates for the PCB’s components. Every component will have its X and Y coordinates and its orientation included. This information enables the robot to place components on the layer of solder on top of the PCB accurately.

Reflow soldering

From the pick and place machine, the PCBs are directly transferred to a 250⁰ oven, where the solder paste melts and secures the electronic components to the board. Immediately after this, the boards are moved into a cooler to harden the solder joints.

The alternative to reflow soldering is a process called wave soldering. Much like the name suggests, in this method a ‘wave’ of solder moves across the board instead of being pasted on to start with.

Inspection

Once the reflow solder is cooled the PCBs are checked. If anything became misaligned or any solder or components are in the incorrect position, this inspection mitigates the risk to the customer.

When it comes to inspection methods, there are a few options:

Manual inspection – The most basic form of inspection, done with the naked eye. Better for PCBs with through hole technology (THT) and larger components.

Optical inspection – Using high resolution cameras, machines can check large batches of boards for accuracy at a high speed.

X-ray inspection – Give technicians the ability to check inner layers of multi-layer PCBs. This inspection method is usually reserved for more complex boards.

What a Marvel!

Cyclops Electronics can supply obsolete, day to day, and hard to find components to PCB manufacturers. We can source components efficiently to keep your production line running. Contact us today at sales@cyclops-electronics.com, or use the rapid enquiry form on our website.

Tags: assembly electronic component supplier pcb solder paste pick and place reflow soldering electronic components wave soldering inspection through hole technology


09 August 2022

Procurement executives concerned about digital innovation

incoterms

Manufacturers are using digital advancements to battle current supply chain disruptions.

Almost all (97%) of those surveyed said they had significant disruptions in their direct materials supply chain.

67% said they were not confident that the technology can cope with the current or near-future challenges.

The most significant technology disadvantages seem to come with lack of visibility into supplier, ‘disjointed’ source-to-pay process with multiple systems, and a lack of spend reporting.

Even more (87%) said modernising the manufacturing procurement and supply chain takes precedence, and it is their biggest challenge yet. A further 92% said avoiding disruptions to their supply chain is their main goal for this year.

Among the main concerns for modernising the supply chain are potential disruptions during implementation, skills shortages, and scale and challenge of change management.

Around half of those surveyed (44%) predicted that the supply chain crisis would begin to calm by 2023. Significantly less (18%) thought it would reduce by the end of this year.

The study surveyed 233 senior procurement executives from US and UK manufacturing companies. It was commissioned by Ivalua, a spend management cloud provider.

See the original press release from Ivalua here.

While Covid-19 was seen as a factor in the supply chain instability, it was not the only culprit. Global supply chains had already been in a vulnerable position, partly due to factors like too much outsourcing and an overreliance on ‘just-in-time’ supply management.

What some are calling ‘outdated technologies’ are slowly being replaced in Industry 4.0. However, the implementation of tech like IoT, AI, machine learning and cloud computing is not a quick process.

The issue may be that this transition period would only further add to the current shortages rather than solving them in the short-term. Most companies are being deterred by this potential loss, and have been avoiding the change for as long as possible.

Whenever digital innovation comes, it will be a gradual and time-consuming process, but businesses will be better off for it.

Tags: supply chain disruptions technology procurement outsourcing just-in-time iot ai machine learning cloud computing digital innovation


03 August 2022

The importance of batteries to the future of electronics

Battery

A brief history

Batteries were first invented long before electricity was even discovered in the 1700s. Around the 1900s the first iterations of what would become modern batteries began to appear. Since then, the tech going into these batteries has improved dramatically, and other battery types are also in development.

Commonly used battery types

Lithium batteries are currently the most widely used types of battery. These are the most common for consumers to purchase, and come in AA, AAA, or 9V sizes. The cheaper alternative in commercial sizes is alkaline batteries. Both types are disposable, but lithium batteries last much longer.

Silver oxide batteries usually come in button form, the kind of batteries that are used for watches and smaller devices. Silver is an expensive material to use, hence why it’s only used for these smaller-size batteries. For hearing aids, the battery of choice is zinc air. These batteries react with the air, so require a small tab to be removed for them to function.

Nickel-cadmium (NiCd) and Nickel-metal hydride are just a couple of the other battery types available on the market. Another ubiquitous kind of battery is the Lithium-ion (Li-ion). These batteries are in most of your gadgets: phones, laptops, and other portable electronic devices.

Thanks to its low maintenance and high energy density it is usually chosen over other types of batteries like nickel-cadmium.

The rise of EVs and batteries

Li-ion batteries are commonly used in Electronic Vehicles (EVs) too. As the market for EVs increases at an exponential rate, the low maintenance li-ion batteries are a favourite among manufacturers. Companies predict li-ions will be the dominant technology for the foreseeable future, and the price was falling until last year.

NCM batteries, made up of Lithium, nickel, cobalt and manganese, and NCA batteries (nickel, cobalt and aluminium) are two current alternatives for Li-ion batteries.

But now, Lithium prices are increasing, and so are the prices of cobalt. Since Li-ion batteries and their alternatives have both elements included, the search is on for a cost-friendly environmentally conscious replacement.

One alternative that seems to be rising to the surface is the sodium-ion battery (Na-ion). As one of the most abundant elements on earth it is significantly cheaper and is easy to extract. Na-ion batteries can also be fully discharged, so there is no risk associated with transporting them.

Return of LFP

But Na-ion is not the only tech on the rise. Some EV companies have started using cobalt-free iron-phosphate (LFP) batteries, and are planning on increasing this amount going forward. The reason behind the usage could be to avoid the use of nickel and cobalt while there are supply issues.

LFP batteries first came about in the mid-90s, however early iterations were difficult to charge and had heat issues. Disposal was also an issue, which meant in the early years these batteries weren’t frequently used.

Efficiency is a sticking point when compared to li-ion, but they have improved enough for use in shorter-range vehicles.

Battery tech for the future

There are many different types of battery tech currently in development. This may end up being essential thanks to the finite nature of some materials currently used.

Some types also require lithium, like the new generation li-ion and lithium-sulfur batteries. Others, however, do not require lithium. Other varieties like zinc-manganese oxide, organosilicon electrolyte, gold nanowire gel and TankTwo String Cell batteries are also potential future technologies.

The need for high power density and longevity will only increase in the future as EVs become more widespread. Eventually irreplaceable materials could also become scarce. It is predicted that by the end of the decade many more battery plants will open to accommodate this.

Shipping costs are also an issue, so reducing the need for exports, and avoiding reliance on other countries, is imperative.

Tags: batteries electricity lithium batteries silver oxide hearing aids zinc air nickel-cadmium phones laptops and other portable electronic devices electronic vehicles evs sodium-ion battery cobalt-free iron-phosphate (lfp) batteries


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