30 Dec 2020 -
 General

2021 – Will shortages hamper growth?

Some of the market segments that will experience growth in the upcoming year include 5G, a rebounding automotive sector, datacenters and increasing reliance on AI and IoT by companies, writes DigiTimes.

“The automotive industry, specifically, will have a big turnaround in 2021. Though automotive demand took a big hit in early 2020 due to the COVID-19 pandemic, it is now recovering and is forecasted to have strong growth in the second half of the coming year.

“The rollout of 5G is also anticipated to have a huge impact on the semiconductor industry as companies prioritize capacity allocation to 5G production. With the 5G network set as the catalyst to multiple technological revolutions, new devices containing higher performing components will be essential requirements,” says DigiTimes.

“Though there is rising demand from growing industries, various raw material shortages are leading to tight supply, extended lead times and increased pricing for many manufacturers and on a variety of components. This doesn’t appear to have an end date in sight and is only thought to get worse in 2021.”

The article warns that “many manufacturers are competing for a variety of raw materials, including CPU and GPU makers in addition to logic IC and power management IC manufacturers” which “could stunt growth and leave manufacturers fighting over resources”.

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Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

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