29 Nov 2022 -

Chip supply: complicated with subtle industry differences – IW

chip lead times

Generalised reports are saying the chip shortage is easing, but is this really the case? “Not exactly”, says writes Zachary Collier, Ph.D, in Industry Week (IW).

“There are many different types of chips that perform different specialized functions, and particular industries have unique needs,” writes Collier.

“Global averages tend to obscure these subtler dynamics. Whether the shortage is easing or persisting depends on the type of chip and the industry,”

“The most technologically advanced chips have seen slowing demand driven by a decrease in personal computer sales,” he says. “On the other hand, less technologically advanced, or “legacy,” chips are still experiencing constraints.

“Such chips are used widely in the automotive industry, where simply migrating to more advanced chips isn’t practical due to high costs of redesign. Here the shortage persists, with CEOs of Ford and Stellantis predicting the shortage to continue into 2023.”

Meanwhile, disruptions such as the war in Ukraine and strict pandemic lockdowns in China continue to play a role in constraining supply.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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