07 Apr 2023 -
 General

Shortages updates: protect the chips you have

supply chain

More than two years after the first wave of Covid-19 factory shutdowns, manufacturers still face a lingering semiconductor chip shortage, writes EPS News.

The CHIPS for America Act and the Science and Technology Promotion and Cooperation Act will help to alleviate the current semiconductor shortage. The CHIPS Act provides $50 billion in funding to help U.S. companies build more semiconductor production capacity and develop new technologies. The Science and Technology Promotion and Cooperation Act will invest $19 billion to bolster U.S. research and development in semiconductor technology. These initiatives are a step in the right direction, but the supply chain disruptions will likely persist for some time yet.

There are ways to mitigate these problems:

Protect existing components

Manufacturers facing a shortage of semiconductors must protect the ones they have in order to avoid further losses. These components are delicate and have low temperature, static and shock tolerances, making them vulnerable during shipment. To reduce these risks, it is important to partner with reliable 3PLs partners – like Astute – who can store components in nitrogen cabinets.

Increase buffer stocks

In order to protect against potential shortages, manufacturers should act now by purchasing larger stocks of components and take advantage of any decreasing shortages to order more than usual. Although it may lead to higher costs upfront, this shift away from lean principles will help to prevent huge losses in the future.

Work with distributors

To help mitigate the effects of the present semiconductor crisis, electronics manufacturers should prioritise building relationships with distributors. They should reach out to distributors to see if it is possible to resell any excess chips from other companies, which may be older but could come at a reduced price. This could help to free up some of the limited semiconductor resources and make these components more widely available.

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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