Recent Articles

Freight costs lowering but logistics remain a setback

While shipping costs are showing an improvement, logistics are still grappling with challenges posed by growing wait times for ships arriving at the Gulf and East Coast ports, according to the Descartes Datamyne trade databases. “While down slightly from August 2021...

Toyota scales back October production output due to chip shortage

Toyota says it will scale back production by 100,000 vehicles during October due to semiconductor shortages, reports CBT News. The news could be a sign that the semiconductor chip shortage will continue to be an issue for manufacturers in the second half of the...

5 trends that will reshape your supply chain

According to EE Times, there are several trends to improve supply networks. Several of them directly impact engineers — and all are worth watching in 2022. #1 - Design for Supply Chain (DfSC). This is catching on as component shortages limit industrial production....

Analysis: How the semiconductor shortage could last into 2024

Sep 21, 2022
semiconductor chip

It could take years for the semiconductor market to fully rebalance, and it’s hard to say when the situation will improve for buyers. That’s the view from Financial Management magazine during an interview with Indian procurement and supply-chain expert, Mohit Sharma, who advises Fortune 500 companies.

“It’s not coming to an end in 2023, if you ask me, honestly,” he said. “Because the entire gestation period, the cycle time [for manufacturing] is wrong. There is a phenomenal amount of complexity.”

Sharma laid out the causes, effects, and solutions to this problem, along with another expert, Lincoln Clark, the US-based head of KPMG’s global semiconductor practice, in separate interviews with FM magazine, which you can read more about here.

Given the importance and scale of the problem, national governments have initiated multibillion-dollar responses. At the end of July, the US Senate passed a bill to boost domestic semiconductor production with industry subsidies of $52 billion.

“We may be at this transition point where the supply constraints are still there, somewhat, and demand in some end markets is beginning to realign to reflect post-COVID and other macroeconomic factors. However, there is now funding and long-term plans to address future needs,” Clark said.

In a recent KPMG survey of semiconductor industry executives, around 65% expected the shortage to “ease” by mid-2023.

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