Tags

Recent Articles

Analysts report improvement in chip lead times

Lead times -- or the time it takes between placing an order and it being fulfilled -- for the industry contracted for the ninth month in a row, another indication that we are exiting the pandemic-triggered chip shortage of about two years, reports Susquehanna...

Global moves for Japanese EMS giants

Japanese semiconductor distributors and EMS factories such as Sun-Wa Technos, Kaga Electronics, and Ryoyo Electro are accelerating overseas expansion in response to the continued shrinking of the local market according to Nikkei Asia. "We had been looking for an...

Uncovering the critical supply chain trends 

Research shows that as many as 91% of supply chain leaders see the current issues with supply chains getting worse or remaining the same. This indicates that the supply chain issues experienced to date will continue for at least the medium term. According to Coupa,...

Japan’s Rapidus to build nation’s most advanced chip plant

Japan's state-backed chipmaker, Rapidus, will build a new $37bn cutting-edge chip plant at Hokkaido to manufacture advanced 2-nm wafers. The factory will be a chip-production hub in Japan, as the country aims to rejuvenate its semiconductor sector through government...

Fortune: We’re going to see another chip shortage

Mar 15, 2023

After the groundbreaking U.S. Chips Act and massive government subsidy for electronics manufacturing, will the U.S. see another chips shortage?

According to Fortune Magazine, the unfortunate answer is: Yes, we will.

“Semiconductor demand is unpredictable. The consensus is that future chip demand will be driven by A.I., electric and autonomous vehicles, the Internet of Things, and 5G/6G. Yet the exact nature, speed, and magnitude of that increase in demand is still unknown. This uncertainty makes demand planning hard for chips of different types—logic vs. memory, digital vs. analog, high voltage vs. low power, and so on—and raises the specter of a shortage,” reports Fortune.

They make the point that chip foundries are typically run at close-to-full utilization, which makes chip fabrication notoriously susceptible to unforeseen events – natural disasters, geopolitical surges, sabotage, etc.

Fortune says the amount of investment needed to build a large enough buffer would be prohibitively high, and most countries and companies won’t be able to make the one-time and recurring investments needed to support chip fabrication, especially at the cutting edge.

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