© filipefrazao84 dreamstime.com_ Components | June 16, 2021
Component shortage - an evaluation of the situation
The component shortage takes control of most processes in the electronics industry. As Head of Strategic Purchasing at EMS service provider A+B Electronic, Marcus Hartwig has to deal with the subject on a daily basis. “To say the time is about to run out, that would have been right six months ago. It is high time.”
He gives an overview of the situation and shows what companies can do now that rely on assembled printed circuit boards. The lack of the smallest electronic components is already causing a standstill for large manufacturers in the automotive industry. If the big customers in the industry feel that way, then you can imagine what's going on in the market itself. Because if the supply can’t be ensured even there, everyone knows that the hour has struck. There are always ups and downs in the EMS industry, regardless of whether it is about demand or supply. Marcus Hartwig has been with A+B Electronic for 20 years and has already experienced a few crises. However, he has not yet gone through a crisis like the current one with active components. Manufacturers' delivery times are skyrocketing, as are prices. If you get a delivery date of almost 70 weeks, the planning is already at the end of 2022. Allocations also only bring small partial quantities into production. “The market is going crazy, there is no other way of saying it. To describe the situation as it is at the moment. I think we can speak of the biggest crisis in this industry”, summarises Marcus Hartwig from A+B Electronic. What are the problems and reasons for the shortage? But according to him, the shortage cannot be blamed solely on the current pandemic. It acts as a kind of fire accelerator, but the crisis is rather the sum of many unfortunate pieces of one puzzle. Transport routes are made more difficult by the lack of air traffic, and the industry is struggling with enormous price roses for components. Growing segments such as e-mobility, entertainment electronics or 5G are making demands on many technical components, while supply does not increase to the same extent as demand. And these are just a few problems in the current situation. As a strategic buyer, Marcus Hartwig also sees difficult situations with customers: “There is a lack of understanding for the rising prices and the long delivery times. Of course, you can still implement orders at short notice in individual cases, but in these cases the suppliers can be paid princely." Even with a realistic view, the problem cannot be remedied in a short term. Rather, it will accompany the electronics industry well into 2022. Many technical areas that were forced to sleep during the pandemic will have a lot of catching up to do. The situation cannot relax quickly. How should customers of EMS providers act now? So how do you react as a company that is absolutely dependent on EMS services? The profession buyer from A+B Electronic has a answer here: “From my point of view, the only way is to order as early as possible. Customers should cover all their needs, better today than tomorrow. So really everything that is visible and justifiable from the customer's point of view. You have to accept the rising prices. At this point it's all about minimising the risk. For us, the most important thing is that our customers receive their assemblies and thus can also sell their own products." The situation is difficult for many companies. You have already been shaken by the Corona crisis and hesitate to make advance payments for 1-2 years if the sale of your own products is not yet foreseeable. But it is also clear that customers who do not take action now will have to survive long dry spells. It's a risk assessment: Can my company handle it or should I order long-term in order to proactively counter the problems? Proactive behaviour also helps EMS service providers such as A+B Electronic in planning and production. Requirements can be registered at an early stage and changes can be addressed directly with the customer developers. What alternatives are there for the components? How can problems be addressed? This should be clarified if possible before the first vacancies occur. Marcus Hartwig closes with positive words: “We won't leave anyone out in the rain, because after all we are together in a crisis. We can only get out of there together as well."
Manz receives equipment order from semiconductor customer Manz receives order from a new customer within the semiconductor industry. The order consists of equipment for Fan-Out Panel Level Packaging in microchip production.
Point-of-Load DC-to-DC converters solve voltage accuracy, efficiency, and latency issues Question: Why use point-of-load (POL) power supplies where the DC-to-DC converter is as close as possible to the load?
Dukosi partners with GF on battery management silicon Battery Management semiconductor vendor, Dukosi, has partnered with GlobalFoundries to produce feature-rich chips for electric vehicles in the automotive industry.
indie Semiconductor set up sales centre of excellence in Japan indie Semiconductor announces that the company extending its market reach and building up a strategic presence in Japan – targeting the automotive market.
Intel and ASML strengthen their collaboration Intel has made its first purchase order for ASML’s TWINSCAN EXE:5200 system, marking the next step on the path to EUV 0.55 NA (High-NA) introduction.
Investment firm HAL invests in Prodrive Technologies Netherlands-based high-tech electronics company, Prodrive Technologies, announces a minority investment by investment company HAL.
Chroma acquires ESS Chroma ATE Inc. has acquired 100% of the shares of Environmental Stress Systems, Inc. (ESS).
TSMC earmarks $40+ billion for manufacturing expansion The worlds biggest semiconductor foundry says that it will increase capital spending to between USD 40 billion and USD 44 billion this year – after having spend USD 30 billion last year.
Siltronic and GlobalWafers deal at a standstill In light of current market reports, Siltronic AG has issued an update stating that there has been no real progress on the German investment review of the takeover by GlobalWafers.
Mycronic receives order for an SLX mask writer The Swedish manufacturer of production equipment for the electronics industry says it has received an order for an SLX mask writer from a new customer in Asia.
Semiconductor heavyweights urge congress to act on crisis IBM and 40+ business and academic leaders urges the New York state congressional delegation to act on the semiconductor crisis.
Verimatrix sold its portfolio of NFC patents to Infineon Verimatrix announces that it has sold its historical portfolio of NFC patents to semiconductor company Infineon Technologies AG for nearly USD 2 million.
JLT completes acquisition of French sales partner JLT Mobile Computers, a developer of computing solutions for demanding environments, has completed its acquisition of longtime French sales partner ID Work.
Rohm suspends Tianjin plant amid Covid-19 outbreak Following the outbreak of the new coronavirus variant in Tianjin, China on January 9, restrictions on movement have been imposed, including the start of PCR testing for all citizens. As a result, Rohm has temporarily suspended its Tianjin plant since January 9.
EMD Electronics expands with new factory in Arizona EMD Electronics, the North American Electronics business of Merck KGaA, Darmstadt, Germany, is expanding with a new factory in the greater Phoenix, Arizona area for the manufacture of equipment for its Delivery Systems & Services (DS&S) business.
Swedish biometrics company team up with Infineon Precise Biometrics has teamed up with Infineon to jointly provide fingerprint technology to allow various applications, including automated adjustments of driver settings in vehicles.
STMicro expects Q421 revenues of $3.56B Semiconductor manufacturer, STMicroelectronics, says that its preliminary and unaudited net revenues for the fourth quarter of 2021 are above its business outlook range.
Allegro MicroSystems appoints new Chief Financial Officer Allegro MicroSystems' Senior Vice President Chief Financial Officer and Treasurer, Paul Walsh, will be retiring.
Avnet Embedded opens new design centre in Germany In a move to further strengthen and expand its design competence of standardised and customised embedded products, Avnet Embedded opened a new design center in Deggendorf, Germany, on January 1, 2022.
TANAKA Denshi Kogyo to open new plant in China Japanese company TANAKA Denshi Kogyo will, via a subsidiary, establish a new plant in Hangzhou City, China, for the production of aluminum bonding wires for power semiconductors. The plant is scheduled to commence operations in November of 2022.
A*STAR and Soitec to develop next-gen SiC semiconductors The Institute of Microelectronics (IME) at the Agency for Science, Technology and Research (A*STAR) and Soitec have entered into a research collaboration with the aim of developing next-generation silicon carbide (SiC) semiconductor devices to power electric vehicles.
From Micron to Intel – David Zinsner joins as CFO Intel has appointed David Zinsner as the company’s executive vice president and chief financial officer (CFO), effective Jan. 17, 2022.
Neumonda brings Intelligent Memory to EMEA Neumonda, a specialty memory company with the “DNA” of former memory manufacturer Qimonda, announces that it has brought its subsidiary, Intelligent Memory (IM) – an independent manufacturer of industrial grade memory solutions – to Europe.
ASML provides an update on Berlin fire ASML is providing an update on the fire that occurred inside a part of its factory in Berlin, Germany on the third of January.
Elbit sells its Power and Control business in the UK Elbit Systems says that its UK subsidiary, Elbit Systems UK, has sold the Power and Control Business of its subsidiary Ferranti Technologies, to TT Electronics for approximately USD 12 million in cash.Load more news