25 May 2021 -
 General

Manufacturers work together to offset chip shortage

With the chip shortage expected to extend into 2023, manufacturers are stepping up to the plate to do what they can to help relieve this critical supply chain disruption, writes SourceToday.

Intel recently announced that it was investing $3.5 billion in a New Mexico chip manufacturing plant (aka, a “fab”) upgrade and also building two new facilities in Arizona. CNET says that investing in new chipmaking plants is part of a major Intel effort to restore Intel’s competitiveness under its new CEO, and that the firm is also going to start building chips for other companies via a foundry setup. “At the New Mexico fab, Intel will increase use of a processor packaging technology called Foveros that Intel debuted in 2018 and first used in an efficient but uncommon chip code-named Lakefield,” CNET reports.

Intel isn’t alone: earlier this month a cross-sector alliance of semiconductor companies and downstream users of semiconductors converged to form the Semiconductors in America Coalition (SIAC). As a group, it called on congressional leaders to appropriate $50 billion for domestic chip manufacturing incentives and research initiatives.

“The Semiconductors in America Coalition looks forward to working with Congress and the Biden Administration to enact needed federal investments in domestic semiconductor manufacturing and research, as called for in the CHIPS for America Act, so more of the chips our country needs are produced on U.S. shore,” John Neuffer, president and CEO of the Semiconductor Industry Association (SIA), said in the release.

In Asia, SK Hynix recently said that it will first invest in the 8-inch wafer foundry business to solve the global chip shortage problem, and at the same time, it will help Korean local IC design companies to expand overseas, according to Yonhap News Agency.

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.

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.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

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

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