Author: Cyclops Marketing

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Electronic Components

Global Semiconductor Sales Increase in Q2 2023

Global Semiconductor Sales Increase 4.7% in Q2 2023

According to The Semiconductor Industry Association, the worldwide sales of semiconductors reached $14.5 billion in the second quarter of 2023. This means it is an increase of 4.7% in comparison to the first quarter of the year, however it is 17.3% less when compared to the same quarter of the previous year.

Global semiconductor forecast

The Semiconductor Industry Association President and CEO, John Neuffer, remained optimistic in his current analysis of the market. He claims that even though semiconductor sales are down in comparison to the previous year, revenue is up for the fourth consecutive month – providing some reassurance that the market may continue on this trajectory for the rest of the year. 

As mentioned in our previous blog on the global semiconductor sales increase in April , the WSTS (World Semiconductor Trade Statistics) published its most recent forecast in May. In this forecast it was predicted that there would be a downturn of 10.3% in 2023, followed by a robust recovery as they estimate a growth percentage of 11.8% for 2024.

Will there be another chip shortage?

The chip shortage may have lessened recently, but the slow transition to more advanced chips is causing others to be stockpiled while others are still in short supply.

One of the industry’s that was impacted the most by the chip shortage was the automotive industry, which was dealt a significant blow by the COVID-19 pandemic. It is estimated that more than 9 million units of light-vehicle production was lost because of the semiconductor shortage. Fast forward to quarter one and two of 2023 and the same losses related to semiconductor shortages decreased to around 524,000 global units. So, although the supply shortages remain there, they are easing off over time and availability has become much more predictable, allowing automotive manufacturers to plan ahead.

Although the chip shortage seems to have eased off back to pre-pandemic levels, some predict we may face another shortage on the horizon. Geopolitical tensions between Russia and Ukraine may have an impact, as well as the unpredictability of natural disasters which has the potential to prevent manufacturing. Then there is the other influencing factors, such as AI and new technology which seems to be progressing at a unpredictable rate – so there is always the uncertainty of how this will impact demand.

Planning ahead

With the uncertainty of global events and other influencing factors, it can be difficult to plan ahead for these circumstances that directly affect supply chains and demand.

At Lantek, we are here to make sure you are as organised as possible in such events. Whether you’re looking for everyday components or obsolete electronic parts, we are here to support you every step of the way.

Our Scheduled Ordering Service allows you take more control of your production line, whilst saving money in the process. We give you the convenience of placing one large order, up to twelve months in advance. This gives you the added benefits of price breaks, lower unit costs that are fixed for a year and the additional piece of mind of knowing that your stock is held in a dedicated facility allocated only for your use.

Contact us on 1-973-579-8100 or email us at sales@lantekcorp.com and see how we can help you with your component requirements.

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Charity/Global

American company runs women in semiconductor industry initiative

The WiSH initiative

Texas Instruments is hosting the Women in Semiconductors and Hardware (WiSH) initiative for the second time.  

The program is aimed at female engineering students in India to encourage them to join the industry. 

The scheme involves a month of mentoring in the semiconductor and hardware industries. The company will host 100 students from 22 colleges.  

According to the Texas Instruments India MD, Santhosh Kumar, only 14% of women end up working in STEM (Science, Technology, Engineering, and Mathematics) in the country. Kumar added that he hoped the WiSH program could help change the status quo and encourage females earlier in their professional journey. 

Other tech industry initiatives

There are several initiatives to encourage more women in the field of electronics based in the US too. The non-profit ‘Women in Electronics’ was formed in 2017 by Jackie Mattox. The organization is focused on encouraging women in electronics industry leadership roles. It is sponsored by some very big names in the industry, including TTI, DigiKey and Mouser Electronics.  

Another organization founded in 2017 is the Women in STEM group. This focuses on increasing the STEM opportunities for high school girls, while breaking down the stereotypes surrounding women in the STEM industries.  

Some STEM stats

A study by the Equal Opportunity Employment Commission released in July 2022 stated that women made up only 29.3% of STEM positions. This proportion is even smaller in leadership positions, with only 25.9% of STEM leaders being female. Women were found to be 40% less likely to work in engineering, and 92% more likely to work in science over technology jobs. 

These statistics, however, are vastly improved from the US Census data collected in 1970 when only 8% of STEM workers were women.  

Here at Lantek we pride ourselves on nurturing all of our employees, and ensuring everyone receives equal opportunity. It also benefits our customers, who can receive top-class sales support from every single member of our team. 

If you’re searching for electronic components, choose Lantek to supply you. With our huge stocklist and sourcing expertise, we can guarantee the best components for the best price. Call us on 1-973-579-8100 or email us at sales@lantekcorp.com. 

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Electronic Components

Happy Independence Day from Lantek

In the United States, the 4th of July is a very special day. 
 

It is the day we commemorate the signing of the Declaration of Independence in 1776, the document that created the United States of America.  

 

The date has been a federal holiday since 1941, which means we here in the US are lucky enough to get a day off! 

 

Independence Day means a lot to us here at Lantek. As an independent global electronic component distributor, independence comes with the territory. Our independence has helped us better serve our customers since the company was founded.  

 

Working with Lantek helps keep you independent too. With our all-encompassing service, you are not relying on multiple companies to fill your requirements.  

 

Many of the values in the Declaration of Independence are reflected in our company’s core values: 

Determination 

Making sure to always go the extra mile to meet your requirements. Whether it is stocking, sourcing or selling, Lantek is here to help. 

Faith 

We can give you assurance that when you buy with Lantek, you are choosing a reliable source with years of experience in sourcing. 

Loyalty 

Your dedicated Account Manager who will be your point of contact for everything that you need, with no unwanted communications. 

Trust 

Our industry-leading quality and component inspection gives you the reassurance that your supply chain is protected with Lantek. 

 

 

Although we are off celebrating Independence Day today, we will be back tomorrow to fill all your electronic component requirements. Email us now at sales@lantekcorp.com and we will get back to you.  

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Electronic Components

Global semiconductor sales increase in April

Global semiconductor industry sales were $40bn during April 2023, according to the Semiconductor Industry Association. This is an increase of 0.3% from March’s $39.8bn, but 21.6% less than April last year, which was $50.9bn.

The global semiconductor forecast

SIA President and CEO John Neuffer said the market remained in a cyclical downturn, but hoped the slight month-to-month increase heralded the coming of better times ahead.

The World Semiconductor Trade Statistics (WSTS) organization released a spring 2023 global semiconductor forecast, which was endorsed by the SIA. The forecast predicted the annual global sales would be $515.1bn this year. This is down from the $574.1bn achieved in 2022, but the WSTS predicted the market would achieve its highest-ever total at $576.0bn in 2024.

Legacy chip demand

Despite the chip shortage lessening, the new challenge facing the industry is scaling up to the new level of demand. The step-up from the older legacy technology often used in consumer goods to newer, more advanced tech is taking time. And currently, this is causing stockpiles of certain chips while others are scarce.

This is one of the reasons why shortages are persisting in some areas of the industry, while other areas have mostly recovered.

Electronic component supply and demand

Worldwide chip production in general is increasing, alongside investments in new equipment and plants. But there still seems to be inventory for certain products that isn’t decreasing. The automotive and EV market is still seeing persistent shortages. Certain automotive companies are struggling with legacy chip availability, while EV makers are trying to stock new tech iterations.

Some predict there will be another chip shortage, despite the introduction of the CHIPS Act. Influencing areas of development, including AI, IoT and 5G will affect demand, but the uncertainty is to what extent it will be affected. Another uncertainty is the likelihood of geopolitical events or natural disasters, which cannot be predicted. This may shut factories or affect transportation, and change the semiconductor output overnight.

Continuing demand

We’re all aware that there are shortages of both everyday components and obsolete electronic parts. Lantek is the perfect partner in times like these, so get in touch today. We’ll be there every step of the way, from your first inquiry until your order is fulfilled. Call us on 1-973-579-8100 or email us at sales@lantekcorp.com. 

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Electronic Components

New CHIPS Act guardrails proposed

The US Semiconductor Industry Association (SIA) has asked Commerce for more flexibility for recipients with facilities in “foreign
countries of concern” in the CHIPS Act.

The SIA published comments on 22 May, asking for a revision on a Proposed Rule of the CHIPS Act, which they say would “unduly restrict
ordinary business activities”. They also believe the Rule is much more restrictive than the goals originally set by Congress.

These “guardrails” are being introduced to prevent the improper use of CHIPS Act funding.

Funding limitations

The Act sets out that any recipients of funding are limited to how much they can invest in “foreign countries of concern”. Existing legacy
manufacturing facilities or equipment were made exempt from these regulations. The Act also states any “significant renovation” to these facilities going forward means they no longer qualify.

The SIA’s comments express concern over the new Proposed Rule’s definition of a significant renovation. Unlike the original rules put
forward, it says, the revised definition could hamper the maintenance and running of these facilities.

One of the reasons for the Act was to ease the US’s reliance on Chinese-produced semiconductors. However, according to the SIA some of the
restrictions will hold CHIPS Act recipients back from competing against other industry players.

The SIA’s response

In the SIA’s comments it says the guardrails should allow companies to maintain the “basic competitiveness” of their facilities. As it is
now, it believes the Proposed Rule would leave companies unable to even maintain facilities.

Among other recommendations, the comments also list changes to how often capacity is measured and revisions to the definition of a legacy
semiconductor.

In a statement released alongside the comments, the SIA said it looked forward to continued engagement and partnership with the Commerce
Department.

 

In comments published separately to those on the guardrails, the SIA also published comments on the advanced manufacturing investment credit regulations proposed by the Treasury Department. Both press releases are available here.

Stay on top of the latest news

Alongside Lantek Corporation being one of the best electronic component distributors around, we also keep you up to date with the latest industry news. Check out other posts on our blog here.

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Electronic Components Semiconductor

Semiconductor cleanrooms

Semiconductor clean rooms

The process of making a semiconductor is a long one, and one of the essential components of the process is the cleanrooms.

What is a cleanroom?

The semiconductor manufacturing process is a very delicate, painstaking process. Cleanrooms have really tight control over many elements,
including temperature, humidity and airflow. These things can all impact the manufacturing process.

Even a single stray particle of dust or a degree below or above the desired temperature could completely alter the semiconductor.

Heat and humidity

Heat can affect the resistance and conductivity of a semiconductor. As a semiconductor’s temperature increases, the conductivity also increases and resistance drops.

Humidity, too, can have a huge impact on the end product. According to Air Innovations, the humidity in a cleanroom should fall between 30% and 50%. These conditions are ideal for stopping bacterial growth and is comfortable for the staff working inside.

Strict regulations

There is a maximum particle count and particle size in place in cleanrooms. This is usually stipulated in ISO requirements, that cleanrooms have to comply with. Depending on the process going on in the cleanroom, the regulations could be more or less stringent.

One of the biggest risk factors to a cleanroom is the people working within it. The staff are required to wear specialist clothing to
prevent cross-contamination, and require a high level of training. It’s also important, this time for the staff’s safety, to design cleanrooms to allow
people to work safely within.

In the event of

The cleanroom filters the air and has mechanisms in place in deal with contamination events.

Due to the demand for semiconductors cleanrooms are often running 24-hours a day. This means they are under a lot of strain and need to
be prepared for any eventuality.

If equipment fails in a cleanroom, all of the components inside are at risk of irreparable damage. These disasters, known as contamination events, can include power glitches, fan failure and pressure malfunctions. Any of these events could be catastrophic if not handled
properly.

Thankfully a cleanroom is unlikely to face a contamination event if it has a well-designs regulation system. If the conditions are tightly
controlled, manufacturers are much less at risk of contamination events.

Squeaky clean

Although we aren’t involved in the manufacturing process, we make sure the electronic components we source for our customers are the best
quality, and we have a guarantee in place to protect you. To hear more about what Lantek can do for you, email us today at sales@lantekcorp.com, or call us on 1-973-579-8100. 

Categories
Electronic Components

Robots in automotive manufacturing

Robots used in automotive manufacturing

The automotive industry is one of the most highly automated supply chains in the world. Of course, robots alone can’t manufacture vehicles, but you can find them in every step of the process.

Welding

Every car needs a large amount of welding, so it makes sense to automate these steps where possible in manufacture.  Welding is a hazardous job, with extreme temperatures, chemicals and weld flash. Taking the human element away from this will not only benefit manufacturers, but will also keep workers safe.

Welding is a job that requires a high degree of accuracy so repeatable, high accuracy welds without human error are also desirable. As the industry progresses and lighter cars are required, and tighter welds that are only possible because of robots.

Painting, coating and sealing

Similarly with welding, painting cars is a job that releases toxic flames and puts workers undertaking it at risk. It also allows the painting to be inhumanly even and perfectly distributed. The same robots can often prime and seal a car body too.

Internal logistics

Just in case you weren’t aware, cars are pretty heavy. Robotics keep the assembly line going by moving heavy loads between stages.

Additionally transporting incoming and outgoing goods can be optimised by swapping the usual manually-operated forklifts for autonomous mobile robots (AMRs). These AMRs can navigate without help to different areas of a facility depending on their cargo. They can also easily deal with awkwardly-shaped objects where a forklift may not.

Assembly

Just as with larger components, smaller car parts can also be assembled by robots. With components like motors that are potentially too small for human hands, automation can be useful.

There are plenty of other areas in the car manufacturing process that are improved with automation. These include removal of material, fixing other machines and dealing with molten metal.

They are not alone

Robots cannot function without human counterparts. The machines need to be programmed, controlled and maintained by staff. So, instead of robots replacing workers, workers and robots have to work together to successfully run a manufacturing facility.

Supplied for you

Lantek can provide a substantial range of electronic components, and we’re experts at sourcing hard-to-find components when others cannot. If you’re looking for components, whether they’re obsolete or day-to-day, choose Lantek as your supplier. Contact us now on 1-973-579-8100, or send us an email at sales@lantekcorp.com.

Disclaimer: This blog is purely for informational purposes and is not instructional. 

Categories
Electronic Components

CHIPS Act Statements of Interest

Credit: sharefaith via Pexels

The Department of Commerce’s CHIPS Act Program Office has received more than 200 Statements of Interest (SOIs) since February.

NOFO

The first Notice of Funding Opportunity (NOFO) was released at the end of February this year. The NOFO detailed some of the incentives for semiconductor and equipment manufacturing facilities laid out in the CHIPS Act.

Over 50% of the statements show interest in the first NOFO, but the rest indicate interest in upcoming funding opportunities for 
semiconductor suppliers and R&D facilities.

Applicants include leading-edge fabs, legacy chip facilities and packaging facilities. The Department is evaluating applications based on whether they will advance the US economy and protect national security.

Statements so far

The CHIPS Program Office Director, Mike Schmidt, and Chief Investment Officer, Todd Fisher, were recently interviewed by Bloomberg.

During the interview Schmidt mentioned some issues that were repeatedly coming up in SOIs, including what federal state local permits were required, and what the NIPA (National Income and Product Accounts) review process would be.

Schmidt made it clear that, although the US has a share in the global semiconductor R&D industry, it is lagging behind in leading-edge logic and advanced chips. They also both stressed they were aiming for supply chain resilience, rather than a purely financial return.

Supporting the industry workforce

Some critics have questioned the relevancy of certain areas covered in the CHIPS Act, including the childcare clause. The Act’s first NOFO set childcare requirements that manufacturers would have to fulfil to qualify for funding. Some question whether this is relevant or necessary to the Act, however Fisher and Schmidt said it was.

Schmidt stated that workforce concerns are at the top of many companies priorities lists. He said that adding a childcare clause is an aide to attracting a larger, more diverse workforce down the line. Fisher added that in the last 20 years the domestic semiconductor industry lost a third of its workers while the industry tripled globally.

The two also cited companies such as Samsung, TSMC and Micron who all have successful childcare policies in place.

A class act

 

Despite the fast-paced nature of the electronics industry, Lantek Corporation is a safe, reliable choice to source all your electronic components.
With an extensive stocklist, global network, unrivalled on-time delivery and dedicated account management team, we’re able to provide a rapid response to our customers’ urgent needs and dynamic market conditions. Contact Lantek today at sales@lantekcorp.com, or call us on 1-973-579-8100. 

Categories
Electronic Components

We’ve moved!

Lantek team
Lantek team in their new office
Welcome to the new Lantek HQ

This month we had the official opening of our brand new facilities. With more than 10,000 square feet of warehouse space and beautiful offices, this moves marks a key milestone in Lantek’s history.

Lantek has been trading for nearly 30 years, and we haven’t slowed down for a second. From our humble beginnings we have become a serious competitor in the electronic component industry. The new facilities play an integral role in servicing our customers, improving our efficiency and expanding our capacity. This will in turn help us deliver on our on-going commitment to providing the highest levels of customer service and support.

We’ve been very busy this week with the move, but some of our staff took a second to tell us what the new offices meant to them.

Our new offices and warehouse are beautiful! In my opinion change has always brought good things and I look forward to what the future holds for us here at Lantek!
Elizabeth MarreroSenior Account Manager
The move to our new building is one that was definitely needed. Upgrading to over 10,000 square feet in warehouse space will give us the room we need to grow as a company.
Shaun BowenShipping Coordinator
Moving in to our new office and warehouse will help us expand our space for holding more stock and scheduling orders for customers. There is much more room in our new warehouse and overall it will function more smoothly. We are very excited for this new change, it has been something Lantek has been looking forward to for years.
Lindsay SoulesAccount Manager
I’m very excited about the new office, but more importantly, the new, larger warehouse. My customers love to schedule their orders, so now with the new space, we have a larger, more organized area to keep their parts. Plus I have an amazing view from my desk!
Shannon MitchellSenior Account Manager
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Lantek new facilities building work in progress
The warehouse while construction was underway
Lantek new facilities ribbon cutting
The official ribbon cutting
Lantek new warehouse
Lantek new warehouse space
Lantek team
Lantek team in their new office
Categories
Electronic Components

Semiconductor manufacture in Vietnam

Vietnam has recently been making infrastructure investments to support its growing semiconductor industry.

Due to the economic instability in recent years, many countries are trying to diversify their supply chains. Companies are hoping to avoid supply shortages like what was faced during Covid-19.

Vietnam’s industry place – then and now

Vietnam first entered the semiconductor industry in the late 70s, but has not been seen as a big player. However, the country has industrial and technology policies that fund high-tech pursuits and give incentives to tech firms.

Recently Samsung Electronics announced an $850 million to being manufacturing electronic components in Vietnam. Manufacture is supposed to start later this year, in July, in the Thai Nguyen province. The company already manufactures smartphones and home appliances at its established facility in Thai Nguyen.

Samsung is one of Vietnam’s biggest foreign direct investors and began investing in the country in 2013.

Investment and talent

Around the same time as Samsung’s announcement, America’s Synopsys also declared its investment in Vietnam. The chip software company had already agreed with the Saigon high-tech park to provide training for Vietnamese electrical engineers.

More than 40% of graduates from university and college in Vietnam majored in science and engineering. Synopsys emphasised the amount of engineering talent present in Vietnam at a lower cost gave the country a competitive edge.

What the future may hold

These companies investing in Vietnam may start a trend of others considering the country as a potential manufacturing base. It could also improve the training and skillset of staff there and foster the potential of domestic semiconductor businesses.

Vietnam’s strategy consists of maintaining diplomatic neutrality while strengthening domestic capabilities. It plans on investing in design, fabrication and assembly going forward. Hopefully this advancement will not only strengthen domestic business, but will also encourage foreign investment.

Guaranteed

 

The electronics market is constantly changing, but you can rely on Lantek. We have a team of experts who can help you source any parts you’re looking for. With our years of experience we are always one step ahead of our competition. We can’t wait to show you what we can do for you, contact us today on 1-973-579-8100 or at sales@lantekcorp.com.