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Electronic Components

What is Raspberry Pi

If you work in the electronics industry you might have heard of the Raspberry Pi circuit board. This device is a single-board computer, originally made by the UK-based Raspberry Pi Foundation.

Raspberry Pi boards use Linux and have a set of general purpose input/output (GPIO) pins. This means the user can attach electronic components and create different circuit boards.

History

The Raspberry Pi Foundation is a charity focused on teaching computing, and aims to make the subject simple and fun. To this end, The Raspberry Pi single-board computer was released to aid students and teachers in learning electronics affordably.

The original Pi was released in 2012 and quickly became popular, not only for education but in multiple industries. Since it uses a Linux-based OS it was also used by programmers and developers.

Raspberry Pi 1 Model B had a single-core 700MHz CPU, an ARM1176JZF-S processor, a VideoCore IV GPU, and had 512MB of RAM, and sold at lower than $35 on its release in April 2012.

Components

Since 2012 there have been several generations of Raspberry Pi. The latest model can have up to 8GB of RAM and a 64-Bit quad-core processor. Additionally, the Raspberry Pi 4 has two micro-HDMI ports that support 4K at 60GHz displays, a MIPI DSI (display serial interface) display port, MIPI CSI (camera serial interface) camera port, 4 pole stereo output and composite video port.

Potential Uses

One of the attractions of the Raspberry Pi device is the 40-pin GPIO header and four USB ports. This gives the opportunity for users to connect and build various types of circuits using external components.

Pi comes with an official operating system named Raspbian OS. The OS has a GUI that can be used for browsing, programming, games, and other applications.

Batteries or solar panels can be connected to power the circuit, which at peak would only require 7.6W of power. A power supply can also be connected via the USB port. One such power supply is provided by the Raspberry Pi Foundation itself at 5.1V.

Microphones and buzzers can be connected via the GPIO pins to create simple circuits. Motion sensors, servos and more, can also be attached in any combination.

There are numerous entertaining projects to undertake for those interested, and for the people who need it there is plenty of inspiration available online.

Pi’nally…

Cyclops Electronics can supply Raspberry Pi products, customers need only get in touch! For this, and all your other electronic component needs, contact Cyclops today.

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Electronic Components

RoHS, REACH, and dangerous substance legislation

RoHS and REACH are two pieces of legislation referring to the control of dangerous substances and chemicals. Companies manufacturing and distributing electronic equipment in Europe must comply to be able to trade.

RoHS

The Restriction of Hazardous Substances (RoHS) Directive came into force in 2004. With an aim to mitigate the effect of dangerous substances on customers, the Directive restricts the concentration of 10 substances used in Electrical and Electronic Equipment (EEE).

Acceptable levels of restricted substances in a single material are generally less than 0.1% or 1000 parts per million (ppm). For the chemical Cadmium, however, levels must be no more than 0.01% or 100ppm.

Companies must provide proof that they comply with the regulations by way of documentation. This includes a Declaration of Conformity, a record of the assessment procedure for conformity, and any other control documentation.

Since its release in ’04, there have been 3 iterations, with the latest being introduced in July of 2019. RoHS 3.0 introduces 11 new category products and four new substances.

The materials listed include products that could be harmful to not only human health, but the environment too. As such, non-compliance carries with it the potential for a heavy fine.

RoHS certification takes place in several steps:

  1. Extraction testing of the components takes place to determine the value of the RoHS substances contained.
  2. On-site manufacturing processes are inspected to ensure RoHS compliance at the facility.
  3. Review all relevant documentation, including the BOM (Bill of Materials), assembly drawings, and test reports from suppliers.
  4. Following this, if all is in order a RoHS Certificate of Compliance is issued.

REACH

REACH stands for the Registration, Evaluation, Authorisation and Restriction of Chemicals. It was introduced a few years on from RoHS, in 2006.

The scope of REACH is more inclusive than RoHS. It encompasses almost all products manufactured, imported, or sold in the EU or UK.

REACH revolves more around Substances of Very High Concern (SVCH), which includes those considered carcinogenic, mutagenic or toxic for reproduction.

Manufacturers and importers need to register the quantities of substances produced every year. Companies need to safely manage and publicise the risks associated with the substances. They’re also responsible for tracking and managing which substances are being used, and produce safety guidelines for each.

 

Recent changes

Due to events like Brexit in the UK, RoHS and REACH regulations became transplanted into UK law. Since many substances are imported between mainland Europe and the UK, the legislation in both remained very similar.

As part of the European Union (Withdrawal) Act 2018, REACH was copied into UK legislation, becoming UK REACH in 2021. Although the difference is seemingly in name alone, the two REACHs operate separately, and manufacturers need to comply with both.

REACH for the stars!

Cyclops can supply products that are RoHS and REACH compliant and can provide this information to our customers. This means Cyclops customers can guarantee if they want RoHS compliant parts, they will receive them. So contact Cyclops Electronics today!

This blog post is designed to be informative and is in no way offering advice or guidance on how to interpret legislation.

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Electronic Components

Resins and coatings for electronic components

Coating components

Printed circuit boards (PCBs) are the core of many electronic devices and contain electronic components like capacitors, transistors and fuses. As such, keeping them safe and protecting them from damage is key to the continued working of electronic devices. Resins and conformal coatings can be used for this purpose.

Resins

Resins are the more sturdy, heavier option in terms of coatings. This is a great choice when protecting a PCB from adverse conditions and insulating it from potential physical damage.

Within the range of resins used, there are three main types that are used, with each suited to certain PCBs.

Epoxy resins

This compound is well-suited for potting electronics, and protects components against moisture and mechanical damage coming from vibrations or shocks.

Depending on if there are amines (curing agent) mixed with the resin the curing time of the PCB can differ. Something to watch out for is the exothermic reaction cause by the curing. Although this can be mitigated, there is a risk of damaging the component.

Polyurethane resins

The pricier cousin of epoxy resin, polyurethane can also protect PCBs against moisture, as well as high temperatures and UV. Most resins have a maximum temperature tolerance of 130⁰C.  However, polyurethane can cope with temperatures of up to 150⁰C if formulated well.

This maximum temperature is in part thanks to the resin having a lower exothermic rate compared to epoxy. Polyurethane is also more flexible, so is favoured when it comes to potting delicate components.

Silicon resins

Silicon also protects against UV light, and so is often used in LED applications where the change in the colour of the LED needs to be minimised.

Silicon is the most expensive of the three but is not as popular as its counterparts. The material thrives when it comes to high operating temperatures and heat-sensitive components, thanks to its low exothermic temperature.

Conformal coatings

While resins are thick, durable and designed for high levels of stress, conformal coatings are thinner, lighter and are transparent.

Thanks to the tiny layer of coating, usually applied with a paint brush or spray, this kind of coating is a lower-risk alternative than a heavy resin for fragile components.

The coating can be altered or removed more easily than the resin too, and the curing time is massively reduced. However, alongside this the component is more exposed and has a lower level of protection. This makes these coatings more useful for PCBs that will face shorter exposures.

Do your own research

Any coating of a PCB should be carefully considered depending on the purpose of the circuit board, the conditions and stresses it will face, and whether it already has a coating on it. If this is the case, chances are this original coating was meant as the PCB’s primary layer of protection.

Speaking of protection, Cyclops quality checks all of the electronic components it supplies. This protects its customers from damaged parts and counterfeits. For an extra layer of protection in your electronic component supply chain, contact Cyclops today.

This blog post is designed to be informative and is in no way offering advice or guidance on how to coat electronic components.

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Electronic Components

Electronic Components of a hearing aid

Hearing aids are an essential device that can help those with hearing loss to experience sound. The gadget comes in an analogue or digital format, with both using electronic components to amplify sound for the user.

Main components

Both types of hearing aid, analogue and digital, contain semiconductors for the conversion of sound waves to a different medium, and then back to amplified sound waves.

The main components of a hearing aid are the battery, microphone, amplifier, receiver, and digital signal processor or mini-chip.

The battery, unsurprisingly, is the power source of the device. Depending on the type of hearing aid it can be a disposable one or a rechargeable one.

The microphone can be directional, which means it can only pick up sound from a certain direction, which is in front of the hearing aid user. The alternative, omnidirectional microphones, can detect sound coming from all angles.

The amplifier receives signals from the microphone and amplifies it to different levels depending on the user’s hearing.

The receiver gets signals from the amplifier and converts them back into sound signals.

The digital signal processor, also called a mini-chip, is what’s responsible for all of the processes within the hearing aid. The heart of your hearing, if you will.

Chip shortages

As with all industries, hearing aids were affected by the chip shortages caused by the pandemic and increased demand for chips.

US manufacturers were also negatively impacted by Storm Ida in 2021, and other manufacturers globally reported that orders would take longer to fulfil than in previous years.

However, despite the obstacles the hearing aid industry faced thanks to covid, it has done a remarkable job of recovering compared to some industries, which are still struggling to meet demand even now.

Digital hearing aid advantages

As technology has improved over the years, traditional analogue hearing aids have slowly been replaced by digital versions. Analogue devices would convert the sound waves into electrical signals,  that would then be amplified and transmitted to the user. This type of hearing aid, while great for its time, was not the most authentic hearing experience for its users.

The newer digital hearing aid instead converts the signals into numerical codes before amplifying them to different levels and to different pitches depending on the information attached to the numerical signals.

Digital aids can be adjusted more closely to a user’s needs, too, because there is more flexibility within the components within. They often have Bluetooth capabilities too, being able to connect to phones and TVs. There will, however, be an additional cost that comes with the increased complexity and range of abilities.

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Electronic Components

Traditional fuses and eFuses

Fuses are an essential electronic component in most circuits, and act as a safety feature to keep the other components within the circuit safe. Billions are used today to safeguard against circuit failures.

The purpose of fuses

If a circuit is overloaded, or there is a voltage surge, the fuse essentially self-destructs to protect the rest of the circuit. A traditional fuse contains a central fusible element that, when heated to excessive temperatures, melts and stops the flow of current through the circuit.

The speed that the thermal fuse melts depends on the how much heat is being caused by the current, and what temperature the fuse is designed to react to. The fuse can be designed with different melting elements that have varying melting points and resistance, so the currents they can cope with can differ.

eFuses

The new kid on the block is the newer electronic fuse, or eFuse. This component is an updated, re-usable version of the more traditional thermal, one-use fuse.

This component comprises of a field-effect transistor (FET) and a sense resistor. The resistor measures the voltage across it, and when it exceeds a certain limit, the current is cut off by the FET. Usually, the eFuse is placed in series with a thermal fuse rather than replacing it, giving the circuit a second layer of more localised protection for components.

Often eFuses are used as a protection when components are plugged into a computer while the power is still on, also called hot-swapping. In automotive applications, programmable logic controllers (PLCs) and battery management eFuses are a great tool to protect the circuits.

An offer you can’t reFuse.

As thermal fuses have been around for so long, it’s unsurprising that there are certain things the more recent eFuse can do slightly better.

The first and most straightforward advantage is the lifespan: once a thermal fuse is activated and the element inside it fuses, it will have to be replaced. The eFuse, however, can be reset and used multiple times without requiring replacement.

The eFuse is also able to respond to a circuit overload more quickly and works in circuits with a lower current and voltage. For some eFuses the current level it reacts at is set, but for some types it can be altered by an external resistor.

It’s possible to create a homemade eFuse too, just by putting together a few FETs, a resistor and an inductor, which filters the output and acts as your sense resistor.

Reaching melting point

Both fuses have their uses, and utilised together are even more effective as a circuit failsafe. However, each designer must consider their requirements and what will best suit their clients. There are scenarios where the thermal fuse just won’t do the job, and it’s better to be safe than sorry, right?

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Electronic Components

Could conductive ink replace conventional circuitry?

Intro

It seems like the stuff of dreams, having a pen or a paintbrush that could conduct electricity. Well, those dreams are very real, readily available to buy online, and at a relatively cheap rate, too.

Conductive ink pens and conductive paint that can be used with a pen, paintbrush, or a printer is a reality, and is already being put to work.

What is it?

Conductive ink and conductive paint are liquid materials mixed with nanoparticles of a conducting material like silver or graphite. The paint and ink are technically slightly different, in that the paint sits on the surface of a substrate, while the ink would sink into a substrate it was applied to, like regular ink on paper.

Although the metals are usually in a solid state at room temperature, if it’s in a nanoparticle form it can be mixed with a liquid. When the liquid is spread and begins to dry, the nanoparticles and electrons within them begin to form conductive chains that the current is then able to travel through.

The inks used normally work at 12V, and can be transparent which means it would be a good choice for companies to integrate it invisibly into their graphics.

Uses

One notable way silver-infused ink is currently used is to print Radio Frequency Identification (RFID) tags in tickets.

Another common place to find conductive paint or ink is in the rear windscreen of cars. The resistive traces applied to windscreens to help defrost them contain conductive paint. Traces printed on the window can also serve as a radio antenna in more recently manufactured cars.

Conductive inks and paints were originally intended to be used for e-textiles and wearables. The potential for clothes that could detect temperature and heart rate, among other features, is an area receiving considerable investment.

Problems

When compared to conventional circuity and conductors, conductive inks and paints will never be able to emulate the strength of conductivity. In a way, it would be unfair to pit the two against each other, like putting boxers from vastly different weight classes in a ring together.

The reliability and connectivity of traditional conductors is much higher so is preferred for regularly used products, however conductive inks and paints would be utilised in areas that traditional means could not. So, as much as these factors are disadvantages they would be irrelevant when it comes to the product.

Layers of the ink or paint may not always be thick enough to have any conductive strength at all, and it could take several layers of it to properly form a current-conducting pathway. Additionally, the user is relying on the nanoparticles in the liquid to align correctly for conduction. The material would work only for smaller direct voltages too, probably up to around 12V.

Silver is a material that has a higher cost than other conductors like graphite, and could make the price of some paints unreasonable for some customers. The low cost alternative is graphite, but this also has a higher resistivity than metals like silver.

The future

As far as development goes, nanoparticle paint is still in its infancy. Its uses are limited and occasionally unreliable, so although it has cornered a niche conductive market it’s unlikely we’ll see it permeating the sector for a while.

If you are looking for trustworthy day-to-day or obsolete electronic components, Lantek are here for you. Don’t paint yourself into a corner, contact Lantek today to find what you’re looking for, at sales@lantekcorp.com

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Electronic Components

Chip shortage impact on electric car sales

Many renowned car companies have, by this point, tested the waters of the electric vehicle (EV) market. However, thanks to the roaring success of electric car sales last year, and governmental and environmental incentives, the EV market is about to shift up a gear.

Global shortage

The vehicle market was not able to avoid the semiconductor shortage that has been prolific for the past few years. Safety features, connectivity and a car’s onboard touchscreen all require chips to function.

This, combined with the work-from-home evolution kick-started by the pandemic, meant that car sales decreased, and manufacturers slowed down production. New car sales were down 15% year-on-year in 2020, and the chips freed up by this ended up being redirected to other profiting sectors.

Even without the demand from the automotive industry, it has not been plain sailing for chipmakers, who not only had to contend with factory closures due to COVID-19, but also several natural disasters and factory fires, and a heightened demand from other sectors. Needless to say, the industry is still catching up two years later.

The automaker market

Despite new car sales having an overall decline in 2020, EV sales had about 40% growth, and in 2021 there were 6.6 million electric cars sold. This was more than triple of their market share from two years previously, going from 2.5% of all car sales in 2019 to 9% last year.

Part of the reason why EV sales were able to continue was due to the use of power electronics in the vehicles. While there is a dramatic shortage of semiconductors and microelectronics (MCUs), the shortage has not affected the power electronics market to the same extent. That is not to say that an EV doesn’t need chips. On the contrary, a single car needs around 2,000 of them.

It begs the question, how many EVs could have been sold if there weren’t any manufacturing constraints. Larger companies with more buying power would have been able to continue business, albeit at an elevated cost, while smaller companies may have been unable to sustain production.

Bestsellers

The growth of the EV business in China is far ahead of any other region, with more EVs being sold there in 2021 than in the entire world in 2020. The US also had a huge increase in sales in 2021, doubling their market share to 4.5% and selling more than 500,000 EVs.

In Europe last year 17% of car sales in 2021 were electric with Norway, Sweden, the Netherlands and Germany being the top customers. Between them, China, the US and Europe account for 90% of EV sales

Predictions and incentives

Several governments have set targets to incentivise the purchase of electric cars, and to cut down on CO² emissions caused by traditional combustion engines. Many of these authorities have given themselves ambitiously little time to achieve this, too.

Biden announced last year that the US would be aiming for half of all car sales to be electric by 2030, and half a million new EV charging points would be installed alongside this. The EU commission was similarly bold, proposing that the CO² emission standard for new cars should be zero by 2035, a 55% drop from the levels in 2021.

Companies are also setting EV targets and investing in new electronic models. Some manufacturers are setting targets as high as 50% of their production being electric within the next decade, while others have allotted $35 billion in investment in their pursuit of EV sales.

Possible pitfalls

Aside from the obvious issues there have been with semiconductor production and sourcing, there are also other factors that may make the future of EVs uncertain. One of the essential components of an electric car is its battery, and the materials that are used are increasing in price.

Lithium, used in the production of lithium-ion EV batteries, appears to be in short supply, while nickel, graphite and cobalt prices are also creeping up. However, research is underway for potential replacements for these, which may help for both supply times and the associated costs.

The shortages are affecting everyone, but thankfully Lantek is here to take some pressure off. No matter what electronic components you are looking for, the team at Lantek are ready to help. Contact us today at sales@lantekcorp.com Alternatively, you can use the rapid enquiry form on our website.

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Electronic Components

What are GaN and SiC?

Silicon will eventually go out of fashion, and companies are currently heavily investing in finding its protégé. Gallium Nitride (GaN) and Silicon Carbide (SiC) are two semiconductors that are marked as being possible replacements.

Compound semiconductors

Both materials contain more than one element, so they are given the name compound semiconductors. They are also both wide bandgap semiconductors, which means they are more durable and capable of higher performance than their predecessor Silicon (Si).

Could they replace Silicon?

SiC and GaN both have some properties that are superior to Si, and they’re more durable when it comes to higher voltages.

The bandgap of GaN is 3.2eV and SiC has a bandgap of 3.4eV, compared to Si which has a bandgap of only 1.1eV. This gives the two compounds an advantage but would be a downside when it comes to lower voltages.

Again, both GaN and SiC have a greater breakdown field strength than the current semiconductor staple, ten times better than Si. Electron mobility of the two materials, however, is drastically different from each other and from Silicon.

Main advantages of GaN

GaN can be grown by spraying a gaseous raw material onto a substrate, and one such substrate is silicon. This bypasses the need for any specialist manufacturing equipment being produced as the technology is already in place to produce Si.

The electron mobility of GaN is higher than both SiC and Si and can be manufactured at a lower cost than Si, and so produces transistors and integrated circuits with a faster switching speed and lower resistance.

There is always a downside, though, and GaN’s is the low thermal conductivity. GaN can only reach around 60% of SiC’s thermal conductivity which, although still excellent, could end up being a problem for designers.

Is SiC better?

As we’ve just mentioned, SiC has a higher thermal conductivity than its counterpart, which means it would outlast GaN at a higher heat.

SiC also has more versatility than GaN in what type of semiconductor it can become. The doping of SiC can be performed with phosphorous or nitrogen for an N-type semiconductor, or aluminium for a P-type semiconductor.

SiC is considered to be superior in terms of material quality progress, and the wafers have been produced to a bigger size than that of GaN. SiC on SiC wafers beat GaN on SiC wafers in terms of cost too.

SiC is mainly used for Schottky diodes and FET or MOSFET transistors to make converters, inverters, power supplies, battery chargers and motor control systems.

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Electronic Components

US import tariffs on some Chinese components lifted

Tariff exclusions introduced on a range of imported goods have been reinstated, easing trade and supply chain relations between China and the US.

The import tariffs, originally put in place in 2018 and 2019, were between 7.5% and 25% for the affected products. The reinstatement of exclusions became retroactively effective from October 2021 and covers approximately $370 billion worth of Chinese imports.

The previous administration granted more than 2,000 exclusions to give relief to certain industries, but most expired before the end of 2020.

Several industries were seriously affected by the original tariffs, including the electronic component market. Parts like capacitors, resistors, transistors, PCBs and many more were hit with huge tariffs, which affected the price of end products and even stopped manufacturing in some sectors.

Areas affected

Aside from components falling victim to high tariffs, medical equipment and PCBs featured in X-ray machinery were also impacted. As many of the tariffs were introduced during the pandemic there was already a heightened demand, and the US had to find products in other places, probably also facing higher costs.

PCBs and graphics cards for use in computers ended up being slapped with a hefty tariff too. The computer sector was one that experienced huge sales during the pandemic, which was one of the factors that contributed to the semiconductor shortage.

Alongside the shortage of PCBs and components, there ended up being additional backlog with tariffs being placed on other consumer electronics like phones, laptops and smartwatches.

What next?

The tariffs affecting electronic components, although high to manufacturers, were likely not as impactful for their customers. Even so, there’s a chance there will be an increase in available components and for a cheaper price, which could result in a slightly lower price for consumers as well.

Products, like the x-ray machinery, that rely on entire imported PCBs may see a larger drop in price as manufacturers can once again access cheaper circuitry.

Computer parts like the GPU might continue to be sold at an increased price, both to make up for the astronomical cost they were originally bought for, and because of continued demand. Not only are graphics cards being used for gaming computers and general use but have also had attention from the crypto and data mining market.

Material costs were already raised by the pandemic, but chances are they will remain high for a while despite the tariff exclusions brought in. Manufacturers will probably try to make up for lost time and money by keeping the costs of products high. Especially for parts such as graphics cards, this might continue for quite a while.

Thankfully, Lantek is a supplier who values its customers above all else, and will always find you the best price for your parts. So don’t delay, get in touch today for all your electronics needs. Email us at sales@lantekcorp.com.

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Electronic Components

Semiconductors in space

Blast off

A post about semiconductors being used in space travel would be the perfect place to make dozens of space-themed puns, but let’s stay down to earth on this one.

There are around 2,000 chips used in the manufacture of a single electric vehicle. Imagine, then, how many chips might be used in the International Space Station or a rocket.

Despite the recent decline in the space semiconductor market, it’s looking likely that in the next period there will be a significant increase in profit.

What effect did the pandemic have?

The industry was not exempt from the impact of the shortage and supply chain issues caused by covid. Sales decreased and demand fell by 14.5% in 2020, compared to the year-on-year growth in the years previous.

Due to the shortages, many companies within the industry delayed launches and there was markedly less investment and progress in research and development. However, two years on, the scheduled dates for those postponed launches are fast approaching.

The decline in investment and profit is consequently expected to increase in the next five years. The market is estimated to jump from $2.10 billion in 2021 all the way up to $3.34 billion in 2028. This is a compound annual growth rate (CAGR) of 6.89%.

What is being tested for the future

In the hopes of ever improving the circuitry of spaceships there are several different newer technologies currently being tested for use in space travel.

Some component options are actually already being tested onboard spacecrafts, both to emulate conditions and to take advantage of the huge vacuum that is outer space. The low-pressure conditions can emulate a clean room, with less risk of particles contaminating the components being manufactured.

Graphene is one of the materials being considered for future space semiconductors. The one-atom-thick semiconductor is being tested by a team of students and companies to see how it reacts to the effects of space. The experiments are taking place with a view to the material possibly being used to improve the accuracy of sensors in the future.

Two teams from the National Aeronautics and Space Administration (NASA) are currently looking at the use of Gallium Nitride (GaN) in space too. This, and other wide bandgap semiconductors show promise due to their performance in high temperatures and at high levels of radiation. They also have the potential to be smaller and more lightweight than their silicon predecessors.

GaN on Silicon Carbide (GaN on SiC) is also being researched as a technology for amplifiers that allows satellites to transmit at high radio frequency from Earth. Funnily enough, it’s actually easier to make this material in space, since the ‘clean room’ vacuum effect makes the process of epitaxy – depositing a crystal substrate on top of another substrate – much more straightforward.

To infinity and beyond!

With the global market looking up for the next five years, there will be a high chance of progress in the development of space-specialised electronic components. With so many possible advancements in the industry, it’s highly likely it won’t be long before we see pioneering tech in space.

To bring us back down to Earth, if you’re looking for electronic components contact Lantek today to see what they can do for you. Email us at sales@lantekcorp.com or use the rapid enquiry form on our website.

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Technology

What alternatives to WiFi are available?

WiFi has been an integral part of our life since the 90s when it first came into being. Originally created for wireless connections in cashier systems under the name WaveLAN, the trademarked WiFi name came into existence just before the turn of the century and hasn’t looked back since.

Alongside WiFi, cellular internet was also thriving, giving people the power to connect to a network through a phone signal. The current rollout of 5G shows that this method of connecting to the internet is also still very popular and getting more advanced by the year.

But since the conception of these two types of communications, several new methods have also been designed, and may be contenders to replace them in future.

How does WiFi work?

WiFi stands for Wireless Fidelity and uses radio waves to transmit signals between devices. The frequency is in the Gigahertz range, as opposed from Kilohertz and Megahertz for AM and FM radio respectively. This is why every iteration of cellular internet has a ‘G’ after it, because the frequency range for WiFi is between 2.4GHz and 5GHz.

But, as with all things, there are limitations to WiFi’s capabilities. Many current devices can’t yet use 5G as they weren’t built to support it, and 2.4G is now so congested it is almost always unusable too.

LiFi

This WiFi alternative, known as Light Fidelity, was first announced in 2011 during a TED Global Talk by Professor Harald Haas where he demonstrated it for the first time. The system uses light instead of radio waves, so lightbulbs can create a wireless type of network.

Despite the term being first coined by Haas, CSO of PureLiFi, several companies have since introduced products with strikingly similar names that also use light. This type of communication is called Optical Wireless Communications (OWC), which encompasses communications using infrared, ultraviolet and visible light.

Satellite WiFi

Starlink is just one example out of the category of satellite WiFi. The SpaceX subdivision uses a network of private satellites positioned across the globe to provide internet access. Currently the company has around 2,000 working satellites orbiting the planet.

Although this is already an established form of internet access, especially in rural areas, the investment in developing this technology and its versatility makes it a contender for the monopoly on WiFi in the future.

Mesh Networking

Mesh networks are often used as an extension to a regular WiFi home connection. The short-range network uses two modulation techniques, Binary and Quadrature Phase-shift Keying (BPSK and QPSK). This makes the mesh network devices act like high-speed Ultra-wideband ones.

The system works on the principle that you install nodes, like mini satellites, throughout your house. The nodes all act as stepping stones, which means the WiFi signal at any point in your house will be much stronger than if you only had one central router.

The fibre-optic future

With the recent advent of 5G and the increasing availability of faster WiFi thanks to tech like fibre optic broadband, it’s unlikely it will go out of fashion very soon. But it’s always nice to have a bit of choice, isn’t it?

One huge benefit that comes with the internet is being able to find electronics component suppliers at high speed. Whether you’re on satellite WiFi, cellular, or LiFi, contact lantek today at sales@lantekcorp.com to see how we can help you.

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Electronic Components

How transistors replaced vacuum tubes

Electronics has come on leaps and bounds in the last 100 years and one of the most notable changes is the size of components. At the turn of the last century mechanical components were slowly being switched out for electrical ones, and an example of this switch was the vacuum tube.

A lightbulb moment

Vacuum tubes were invented in the early 1900s, and the first ones were relatively simple devices containing only an anode and a cathode. The two electrodes are inside a sealed glass or aluminium tube, then the gas inside would be removed to create a vacuum. This allowed electrons to pass between the two electrodes, working as a switch in the circuit.

Original vacuum tubes were quite large and resembled a lightbulb in appearance. They signalled a big change in computer development, as a purely electronic device replaced the previously used mechanical relays.

Aside being utilised in the field of computing, vacuum tubes were additionally used for radios, TVs, telephones, and radar equipment.

The burnout

Apart from resembling a bulb, the tubes also shared the slightly more undesirable traits. They would produce a lot of heat, which would cause the filaments to burn out and the whole component would need to be replaced.

This is because the gadget worked on a principle called thermionic emission, which needed heat to let an electrical reaction take place. Turns out having a component that might melt the rest of your circuit wasn’t the most effective approach.

The transition

Transistors came along just over 40 years later, and the vacuum tubes were slowly replaced with the solid-state alternative.

The solid-state device, so named because the electric current flows through solid semiconductor crystals instead of in a vacuum like its predecessor, could be made much smaller and did not overheat. The electronic component also acted as a switch or amplifier, so the bright star of the vacuum tube gradually burned out.

Sounds like success

Vacuum tubes are still around and have found a niche consumer base in audiophiles and hi-fi fanatics. Many amplifiers use the tubes in place of solid-state devices, and the devices have a dedicated following within the stereo community.

Although some of the materials that went into the original tubes have been replaced, mostly for safety reasons, old tubes classed as New Old Stock (NOS) are still sold and some musicians still prefer these. Despite this, modernised tubes are relatively popular and have all the familiar loveable features, like a tendency to overheat.

Don’t operate in a vacuum

Transistors are used in almost every single electronic product out there. Lantek have a huge selection of transistors and other day-to-day and obsolete components. Inquire today to find what you’re looking for at sales@lantekcorp.com or use the rapid enquiry form on our website.

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Electronic Components

Carbon nanotubes being used to develop ‘Smart Clothes’

Since the discovery of carbon nanotubes (CNTs) in 1991, the material has been utilised for commercial purposes in several areas, including anti-corrosion paints, hydrophobic coatings and engineering plastics.

CNTs were one of the materials that made it possible for two-dimensional graphene to be used and researched. On a broader scale, it allowed nanoscience to branch into its own area of study.

The material is made up of a cylindrical tube of carbon atoms, and can be single-walled or multi-walled. On a molecular level, CNTs are 100 times more robust than steel and a fraction of the weight.

But in the last ten years, there have been studies into how the material’s heat and electrical conductive qualities might be used in another everyday product: clothes.

Keeping warm

A recent study by North Carolina State University examined CNTs’ usage as a ‘smart fabric’ in 2020. The researchers investigated how its heating and cooling properties could be harnessed to make a cheaper alternative to the current thermoelectric materials being used.

The plan is to integrate the CNTs into the fabric of the clothes, rather than an extra layer, which means the flexible material has an advantage over others currently available on the market.

The low thermal conductivity of CNTs means that heat would not travel back to the wearer, and the same applies to cool air, when an external current is applied.

Heart racing yet?

 A study from seven years previously studied how CNTs could be used as a built-in electrocardiogram (ECG) within athletic wear. The nanotube fibres sewn into the clothes monitored heartrate and took a continual cardiogram from the wearer.

The Brown School of Engineering lab, who conducted the research, said the shirt would have to be a tight fit to make sure the material touched the skin, but the t-shirt was still – miraculously – machine-washable.

According to the researchers the enhances shirt actually performed better than a chest-strap monitor ECG when compared in a test, and could connect to Bluetooth devices to transmit the collected data.

Recharging…

In 2018 engineers from the University of Cincinnati, in partnership with the Wright-Patterson Air Force Research Laboratory, conducted a study into how CNT clothes could charge a phone.

This study investigated the applications of CNT clothes in the military, where it could be used to charge the electronics that form part of a soldier’s field equipment instead of weighty batteries. Using a similar technique to the other studies, where CNT fibres were sewn into the clothes.

Will it make fashion week?

Not quite yet. Despite the cheaper-by-comparison cost of the material, the quantity of material required for mass production is too high for what is currently available and is still relatively young and untested. The specialist equipment that would also be needed for CNT textile production would be an investment many manufacturers would decide against.

While CNTs may not be a hugely sought-after material just yet, Lantek can supply you with hard-to-find electronic components when you need them most. Contact us now at sales@lantekcorp.com to see how we can help you.

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Electronic Components

Upskilling and STEM investment: how to combat the semiconductor worker shortage

Noticed that you’re waiting longer than usual for your electronic parts these days? You’re not the only one.

The lack of chips is considerably noticeable, but it’s also drawn attention to how desperate we are for more electronics workers. There’s a lack of highly skilled people in the tech sector right now, and with the States aiming to increase its share of semiconductor production, we’ll need to fill out this workforce fast.

But the experts have a few ideas up their sleeves, here’s what they think:

It’s a BIG industry

The Semiconductor Industry Association (SIA) released a report in 2021 that said for every US worker directly employed in the semiconductor industry in 2020, another 5.7 jobs were supported. This means that two years ago at least 1.85 million jobs were supported, either directly or indirectly, by the sector.

The 277,000 people that work specifically in the sector, in manufacturing, design, testing and research, are enabling around 300 downstream sectors, according to the report.

Upskilling/Reskilling

As the electronics industry is constantly changing and evolving it might be difficult for longer-serving employees to be equipped with currently relevant skills. The increasing automation of production lines, while efficient for manufacturers, requires highly skilled workers for operation and maintenance. Therefore, the upskilling and reskilling of employees is essential.

In another SIA report, in collaboration with Oxford Economics, the association said that only 20% of employees in the semiconductor industry actually attended university in 2019. To add to this, the higher-skilled members of the STEM sectors were more likely to go on to work for consultancy or investment firms. Giving the current workforce the option to upskill, and the potential extra wages that would come with it, might be an easy and enticing way to bulk up the thin-on-the-ground areas of employment.

Similarly, giving skilled workers the chance to re-specialize within their areas of expertise could ease the shortage relatively simply.

International talent

Joint workforce development may also be an avenue for investment. The US’s international partners could well help bridge the gap in the electronics industry, something that the 2019 European METIS initiative explored.

The electronics industry project, co-funded by the student exchange programme Erasmus+, looked to fund the education, professional mobility and recognition of electronics industry qualifications. The project aimed to encourage international students to study and work in the sector in different countries.

Employees and Incentives

It’s probably no surprise that there are more men in electronics manufacturing, with the US Bureau of Statistics saying that women made up less than 30% of the sector in 2021. The majority of women were white, with approximately two in five women being Asian or Hispanic. Black or African American females were the most underrepresented at about 4%

Students are another source of untapped potential. Thankfully, the new semiconductor legislation that could soon be signed into law will increase funding for STEM students. The US Innovation and Competition Act, passed by the Senate last year, promised $5 billion in scholarships for STEM-specializing students, $8 billion for workforce programs and almost $10 billion for university technology centers and innovation institutes.

These employee groups might be ideal targets for recruitment and development in the industry, and since the CHIPS Act promises so many additional jobs in the next four years, employers better get on it!

But you don’t need to worry until then. Thankfully when it comes to electronic parts, Lantek always has your back. Talk to us today at sales@lantekcorp.com and we’ll help you find what you’re looking for.

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Electronic Components

The process of making silicon semiconductors

The process of making silicon semiconductors

As the global shortage of semiconductors (also called chips) continues, what better time is there to read up on how these intricate, tiny components are made?

One of the reasons the industry can’t catch up with the heightened demand for chips is that creating them takes huge amounts of time and precision. From the starting point of refining quartz sand, to the end product of a tiny chip with the capacity to hold thousands of components, let’s have a quick walkthrough of it all:

Silicon Ingots

Silicon is the most common semiconductor material currently used, and is normally refined from the naturally-occurring material silicon dioxide (SiO₂) or, as you might know it, quartz.

Once the silicon is refined and becomes hyper pure, it is heated to 1420˚C which is above its melting point. Then a single crystal, called the seed, is dipped into the molten mixture and slowly pulled out as the liquid silicon forms a perfect crystalline structure around it. This is the start of our wafers.

Slicing and Cleaning

The large cylinder of silicon is then cut into very fine slices with a diamond saw, and further polished so they are at a perfect thickness to be used in integrated circuits (ICs). This polishing process is undertaken in a clean room, where workers have to wear suits that will not collect particles and will cover their whole body. Even a single speck of dirt could ruin the wafers, so the clean room only allows up to 100 particles per cubic foot of air.

Photolithography

In this stage the silicon is covered with a layer of material called a photoresist, and is then put under a UV light mask to create the pattern of circuits on the wafer. Some of the photoresist layer is washed away by a solvent, and the remaining photoresist is stamped onto the silicon to produce the pattern.

Fun fact – The yellow light often seen in pictures of semiconductor fabs is in the lithography rooms. The photoresist material is sensitive to high frequency light, which is why UV is used to make it soluble. To avoid damaging the rest of the wafer, low frequency yellow light is used in the room.

The process of photolithography can be repeated many times to create the required outlines on each wafer, and it is at this stage that the outline of each individual rectangular chip is printed onto the wafer too.

Layering

The fine slices are stacked on top of each other to form the final ICs, with up to 30 unique wafers being used in sequence to create a single computer chip. The outlines of the chips are then cut to separate them from the wafer, and packaged individually to protect them.

The final product

Due to this convoluted, delicate process, the time take to manufacture a single semiconductor is estimated to take up to four months. This, and the specialist facilities that are needed to enable production, results in an extreme amount of care needing to be taken throughout fabrication.

If you’re struggling to source electronic components during this shortage, look no further than Cyclops Electronics. Cyclops specialises in both regular and hard-to-find components. Get in touch now to see how easy finding stock should be, at sales@cyclops-electronics.com.

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Electronic Components

The History of Transistors

The History of Transistors

Transistors are a vital, ubiquitous electronic component. Their main function is to switch or amplify the electrical current in a circuit, and a modern device like a smartphone can contain between 2 and 4 billion transistors.

So that’s some modern context, but have you ever wondered when the transistor was invented? Or what it looked like?

Pre-transistor technology

Going way back to when Ohm’s Law was first discovered in 1820s, people had been aware of circuits and the flow of current. As an extension of this, there was an awareness of conductors.

Following on from this, semiconductors accompanied the birth of the AC-DC (alternating current – direct current) conversion device, the rectifier, in 1874.

Two patents were filed in the 20s and 30s for devices that would have been transistors if they had ever reached past the theoretical stage. In 1925 Julius Lilienfeld of Austria-Hungary filed a patent, but did not end up releasing any papers regarding his research on the field-effect transistor, and so his discoveries were ignored.

Again, in 1934 German physicist Oskar Heil’s patent was on a device that, by applying an electrical field, could control the current in a circuit. With only theoretical ideas, this also did not become the first field effect transistor.

The invention of transistors

The official invention of a working transistor was in 1947, and the device was announced a year later in 1948. The inventors were three physicists working at Bell Telephone Laboratories in New Jersey, USA. William Shockley, John Bardeen and Walter Brattain were part of a semiconductor research subgroup working out of the labs.

One of the first attempts they made at a transistor was Shockley’s semiconductor triode, which was made up of three electrodes, an emitter, a collector and a large low-resistance contact placed on a block of germanium. However, the semiconductor surface trapped electrons, which blocked the main channel from the effect of the external field.

Despite this initial idea not working out, the issue was solved in 1946. After spending some time looking into three-layer structures featuring a reversed and forward-biased junction, they returned to their project on field-effect devices in a year later in 1947. At the end of that year, they found that with two very close contact junctions, with one forward biased and one reverse biased, there would be a slight gain.

The first working transistor featured a strip of gold over a triangle of plastic, finely cut with a razor at the tip to create two contact points with a hair’s breadth between them and placed on top of a block of germanium.

The device was announced in June of 1948 as the transistor – a mix of the words ‘transconductance’, ‘transfer’ and ‘varistor’.

The French connection

At the same time over the water in France, two German physicists working for Compagnie des Freins et Signaux were at a similar stage in the development of a point contact device, which they went on to call the ‘transistron’ when it was released.  

Herbert Mataré and Heinrich Welker released the transistron a few months after the Bell Labs transistor was announced but was engineered completely without influence by their American counterpart due to the secrecy around the Bell project.

Where we are now

The first germanium transistors were used in computers as a replacement for their predecessor vacuum tubes, and transistor car radios were produced all within only six years of its invention.

The first transistor was made with germanium, but since the material can’t withstand heats of more than 180˚F (82.2˚C), in 1954 Bell Labs switched to silicon. Later that year Texas Instruments began mass-producing silicon transistors.

First silicon transistor made in 1954 by Bell Labs, then Texas Instruments made first commercial mass produced silicon transistor the same year. Six years later in 1960 the first in the direct bloodline of modern transistors was made, again by Bell Labs – the metal-oxide-semiconductor field-effect Transistor (MOSFET).

Between then and now, most transistor technology has been based on the MOSFET, with the size shrinking from 40 micrometres when they were first invented, to the current average being about 14 nanometres.

The latest in transistor technology is called the RibbonFET. The technology was announced by Intel in 2021, and is a transistor whose gate surrounds the channel. The tech is due to come into use in 2024 when Intel change from nanometres to, the even smaller measuring unit, Angstrom.

There is also other tech that is being developed as the years march on, including research into the use of 2D materials like graphene.

If you’re looking for electronic components, Lantek are here to help. Contact us at sales@Lantekcorp.com to order hard-to-find or obsolete electronic components. You can also use the rapid enquiry form on our website https://www.cyclops-electronics.com/

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component shortage

Ukraine-Russia conflict may increase global electronics shortage

Ukraine-Russia conflict may increase global electronics shortage

Due to conflict between Russia and Ukraine, both of whom produce essential products for chip fabrication, the electronic component shortage across the globe may worsen.

Ukraine produces approximately half of the global supply of neon gas, which is used in the photolithography process of chip production. Russia is responsible for about 44% of all palladium, which is implemented in the chip plating process.

The two leading Ukrainian suppliers of neon, Ingas and Cryoin, have stopped production in Moscow and said they would be unable to fill orders until the fighting had stopped.

Ingas has customers in Taiwan, Korea, the US and Germany. The headquarters of the company are based in Mariupol, which has been a conflict zone since late February. According to Reuters the marketing officer for Ingas was unable to contact them due to lack of internet or phone connection in the city.

Cryoin said it had been shut since February 24th to keep its staff safe, and would be unable to fulfil March orders. The company said it would only be able to stay afloat for three months if the plant stayed closed, and would be even less likely to survive financially if any equipment or facilities were damaged.

Many manufacturers fear that neon gas, a by-product of Russian steel manufacturing, will see a price spike in the coming months. In 2014 during the annexing of Crimea, the price of neon rose by 600%.

Larger chip fabricators will no doubt see smaller losses due to their stockpiling and buying power, while smaller companies are more likely to suffer as a result of the material shortage.

It is further predicted that shipping costs will rise due to an increase in closed borders and sanctions, and there will be a rise in crude oil and auto fuel prices.

The losses could be mitigated in part by providing alternatives for neon and palladium, some of which can be produced by the UK or the USA. Gases with a chlorine or fluoride base could be used in place of neon, while palladium can be sourced from some countries in the west.

Neon could also be supplied by China, but the shortages mean that the prices are rising quickly and could be inaccessible to many smaller manufacturers.

Neon consumption worldwide for chip production was around 540 metric tons last year, and if companies began neon production now it would take between nine months and two years to reach steady levels.

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Technology

What is the Internet of Things?

EveryThing

In terms of IoT, a ‘Thing’ is anything that can transfer data over a network and can have its own IP address. They are most often ‘smart’ devices, that use processors or sensors to accumulate and send data.

These devices have little-to-no need for human interaction, except in cases where the smart device is controlled by a remote control or something similar. Due to the low cost of electronic components and wireless networks being readily available, it’s possible for most things to become, well, Things.

Technically, larger items like computers, aeroplanes, and even phones, cannot be considered IoT devices, but normally contain a huge amount of the smart devices within them. Smaller devices, however, like wearable devices, smart meters and smart lightbulbs can all be counted as IoT items.

There are already more connected IoT devices than there are people in the world, and as more Things are produced this progress shows no sign of slowing.

Applications of IoT

The automation and smart learning of IoT devices has endless uses and can be implemented in many industries. The medical industry can use IoT to remotely monitor patients using smart devices that can track blood pressure, heart rate and glucose levels, and can check if patients are sticking to treatment plans or physiotherapy routines.

Smart farming has garnered attention in recent years for its possibly life-saving applications. The use of IoT devices in the agricultural industry can enable the monitoring of moisture levels, fertiliser quantities and soil analysis. Not only would these functions lower the labour costs for farmers substantially but could also be implemented in countries where there is a desperate need for agriculture.

The industrial and automotive industries also stand to benefit from the development of IoT. Road safety can be improved with fast data transfer of vehicle health, as well as location. Maintenance could be performed before issues begin to affect driving if data is collected and, alongside the implementation of AI, smart vehicles and autonomous cars could be able to drive, brake and park without human error.

What’s next?

The scope of possibilities for IoT will only grow as technology and electronics become more and more accessible. An even greater number of devices will become ‘smart’ and alongside the implementation of AI, we will likely have the opportunity to make our lives fully automated. We already have smart toothbrushes and smart lightbulbs, what more could be possible in the future?

To make it sustainable and cost-effective, greater measures in security and device standardisation need to be implemented to reduce the risk of hacking. The UK government released guidelines in 2018 on how to keep your IoT devices secure, and a further bill to improve cyber security entered into law in 2021.

If you’re looking for chips, processors, sensors, or any other electronic component, get in touch with Lantek today. We are specialists in day-to-day and obsolete components and can supply you where other stockists cannot.

Contact Cyclops today at sales@lantekcorp.com. Or use the rapid enquiry form on our website to get fast results.

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Electronic Components

The use of robotics in electronics manufacturing

The use of robotics as part of the manufacturing chain has increased in recent years, as more companies move towards automation of their services.

Robotics can limit the amount of human error possible in a production process, and can operate in confined spaces, and can even test equipment to check functionality or identify issues.

The dark side

Don’t worry, it’s not as evil as it sounds. The use of robotics is sometimes called the ‘lights out’ concept, because robots can work without requiring light. One company in Japan is pioneering this way of working.

The manufacturer uses a majority robot workforce, with almost no human intervention, to produce more manufacturing robots for their customer base, which includes Apple and Tesla.

Of course, not all manufacturers employ so many robots that they can just switch off the lights at their plants, but there are several places in the production line that robotics could speed up the manufacturing process, and many larger manufacturers have already implemented automation to a degree.

Robot wars

There are several different types of robots that are used in production, the most regular until recently being the Selective Compliance Assembly Robot Arm (SCARA). Other types include 6-Axis articulated arms, delta and cartesian robots.

Each robot has its own advantages and disadvantages, and as such depending on the task certain robots are a better choice than others.

SCARAs and 6-Axis robots are both robotic arms that are used for their high precision and speed. Although a 6-Axis is slightly slower, it has more flexibility and has a higher load capacity than the more traditional SCARA.

Delta robots have been used in the food and consumer goods sector for years, mainly for picking and packing purposes. They can function at a very high speed and have good repeatability, so they are a good choice for the assembly of electrical components.

Cartesian robots work on only three axes, but are smaller, simpler, and cheaper than other manufacturing robots. Cartesians may be a good fit for smaller businesses, who have limited production space and have to consider a more multipurpose or customisable robot.

Testing, testing

Robots are not only great for manufacturing, they can also help in the inspection of products. Robots that feature mounted cameras can check electronics to ensure they have been assembled correctly with no issues with the alignment or soldering. Automated optical inspections (AOI) and automated x-ray inspections can be performed with these robots. If an arm mounted with an infrared camera is used, it can check hotspots on a circuit board or other thermal issues with the circuitry.

There is a distinct possibility that the future holds even further automation, and with the current shortage in electronic components many manufacturers hope that this will go some way to helping production.

Lantek are specialists in hard-to-find and obsolete components. If you’re struggling for stock or want to check out what electronic components we can supply to you, contact us at sales@lantekcorp.com. Or use the rapid enquiry form on our website.

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component shortage

The global electronic component shortage – what happened?

Arguably the biggest ongoing crisis in the tech industry is the global semiconductor shortage. You can’t go far online without seeing news about it, and many people have seen it firsthand when trying to buy a brand-new car, or a recently released games console.

When did it start?

The obvious factor contributing to the shortage is COVID-19. The virus infected millions and sent the world into lockdown, which then led to the housebound masses logging in and going online.

At the start of lockdown in March 2020, 60% of 18-24-year-olds were increasing their use of home delivery instead of leaving the house. Amazon’s revenue also rose at a quicker pace than in previous years, with the company making $88.91 billion in Q2 2022.

Alongside the increase in online shopping came an increase in other digital activities like PC and console gaming. In the last quarter of 2020 desktop, notebook and workstation sales rose to a record 90.3 million units. Tech company Sony saw 25% of its revenue come from game and network services, and around 18% from electronics products and solutions.

In another case of bad timing, both Microsoft and Sony were about to release their next generation of game consoles, and Nintendo Switch sales were booming. All of this meant demand for components was skyrocketing.

This then led to delays in car manufacturing. Why? Because all the available chips were being bought up by computer and electronics manufacturers, so there were none left for the automotive industry. A car part may need between 500 and 1,500 chips, and are used for many parts including the dashboard display and to control the airbag.

There were other elements that contributed to the shortage before this: The US and China had been imposing increasingly high tariffs on each other for the past two years, and natural disasters and fires took out several factories in Japan, Taiwan and China.

When will it end?

The comeback from the semiconductor shortage will not be quick. Some factories that were shut down by natural disasters are still repairing the damage and trying to reopen production. But as the demand is staying high, there will need to be new facilities created to cater for the increase in demand.

The time, expertise and money needed to start a new factory will be too much for smaller firms to manage, so then the hole in the market needs to be filled by larger corporations like Intel and Samsung. Both companies currently have plans to open new fabs in America, but it will be a while before they can start production.

Intel’s ambitious plan to construct the one of the largest chip factories ever in Ohio would alleviate demand, but is not due to start production until 2025. Similarly, Samsung’s Texas fab will not be operational until 2024.

Despite smaller factories opening, the substantial backlog will not be solved by these alone. There will need to be a combination of an increase in production, time efficiency and, with the pandemic in mind, automation to decrease person-to-person contact. There will also need to be a stock of chips manufactured to avoid shortages in future.

Europe and America have both put an emphasis on increasing their domestic chip production in the next decade, in the hopes that this will prevent importing issues in the future.

The speed at which technology is currently being developed also puts manufacturers in a tight spot. Not only are more electronic devices being produced all the time, but the technology of the components within them is also advancing quickly.

While it is difficult to forecast entirely, experts say the shortage could last a few more years. Hopefully, with the opening of the larger plants estimated for approximately the same time, the chip shortage might be mitigated by 2025.

We can help

The market is currently just as competitive in the case of other electronic components, but Cyclops can help. With our extensive stock of day-to-day and obsolete components, we can supply you when others cannot.

For all your component needs, contact Lantek today at sales@lantekcorp.com. Or submit a rapid enquiry through our website.

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Electronic Components Semiconductor

The CHIPS for America act

The Biden-Harris administration is trying to bring semiconductor development home to the US.

Once a superpower in the chip-making industry, America’s share of the semiconductor market has plummeted from 37% in the 1990s to only 12% this decade.

The demand for chips is constantly increasing and production cannot keep up, it’s left us all wondering when we’ll manage to get a PS5 and a new car.

The majority of the US’s chips are sourced from Asian countries like China, Japan, and Taiwan, whose Taiwan Semiconductor Manufacturing Company (TSMC) sells the most chips globally.

But then when the pandemic hit, the US chip stocks fell. As outbreaks overseas caused factory closures, it became more and more difficult to get hold of the stock suppliers were looking for. The closures and delays led to raw materials and logistics increasing in price too, making the whole situation pretty dire.

Suddenly, finding affordable stock that would arrive swiftly and safely was much harder than it used to be, and it showed. A report from the US commerce department said the chip shortage was hitting the country hard, all while demand rose by 17% from 2019 to 2021.

The Senate passed an act in June 2021 called the US Innovation and Competition Act (USICA), which detailed several initiatives to increase technological autonomy. This included the ‘Creating Helpful Incentives to Produce Semiconductors’ (CHIPS) Act, which would allocate $52 billion for domestic semiconductor research, design, and manufacturing.

The act’s House of Representatives equivalent was passed by the Senate on February 4th 2022 titled the ‘America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength’ (America COMPETES) Act. The package, worth $250 billion, would invest in the improvement of domestic manufacturing and research.

The act will encourage investment for the building of new fabs, create incentives for manufacturers who want to upscale their equipment, and will provide funds to improve research and communications in the semiconductor field.

Aside from these incentives, Intel also pledged $100 million to fund partnerships with universities located near its new factory to “build a pipeline of worker talent and bolster research programs in the region”.  

One of the driving factors to increase the domestic stock of chips is the rise in production of Electric Vehicles (EVs). The current administration wants to raise the number of EVs being produced so they make up half the cars in production by 2030. However, a typical EV will need twice the amount of chips a regular car takes at around 2,000.

The America COMPETES Act will also contribute funds to the improvement of Homeland Security, a move that has been welcomed by industry leaders. President Joe Biden received a letter early last year from professionals in the security sector, showing their support for funding the production and design of semiconductors. A supply of domestic chips would no doubt benefit this sector, as chips are used in security devices and infrastructure.

The two houses are expected to discuss the reconciliation of the act by conference committee later in February.

Despite the current shortages, Lantek are here to help. We have a range of day-to-day and obsolete electronic parts to suit your needs and will go the extra mile to help. Send us your enquiries today at sales@lantekcorp.com.

 

Categories
Electronic Components

Latest electronic component factory openings

We’ve all heard about the shortages in standard components like semiconductors and chips. Cars, phones and computers, items we use every day, are no longer being produced at the speedy rate we’ve come to expect. The cause of this shortage is, in part, due to the COVID-19 pandemic.

To combat this shortage many electronic component manufacturers have announced the opening or development of new factories. This is especially noticeable in Europe and America, where production has often been outsourced to Asia in the past.

So who are the latest companies expanding operations, and how much are they spending? Check out our quick run-down of factories and when they should open:

Company: Intel

Location: Ohio, USA

Product: Chips

Completion date: 2025

Cost: $20 billion (£14.7 billion)

The latest, and possibly greatest, announcement on our list comes from Intel. The corporation revealed in January that they would be committing to building two chip manufacturing plants in New Albany, Ohio. The move is said to be due to supply chain issues with Intel’s manufacturers in Asia, and should boost the American industry with the creation of at least 3,000 jobs. Construction should begin this year.

Company: Samsung Electronics

Location: Texas, USA

Product: Semiconductors

Completion date: 2024

Cost: $17billion (£12.5billion)

The household name announced late last year that they would begin work on a new semiconductor-manufacturing plant in Taylor, Texas. The Korean company stated the project was Samsung’s largest single investment in America, and is due to be operational by the middle of 2024.

Company: Infineon

Location: Villach, Austria

Product: Chips

Completion date: 2021

Cost: 1.6 billion (£1.3 billion)

After being in construction since 2018, Infineon’s Austrian plant became operational in September last year. The chip factory for power electronics, also called energy-saving chips, on 300-millimeter tin wafers began shipping three months ahead of schedule in 2021, and its main customer base will be in the automotive industry.

Company: Northvolt

Location: Gdańsk, Poland

Product: Batteries

Completion date: 2022

Cost: $200 million (£148 million)

The Swedish battery manufacturer is expanding its operations with a new factory in Poland. While initial operations are supposed to begin this year producing 5 GWh of batteries, it hopes to further develop to produce 12 GWh in future. Northvolt has also just begun operations at its new battery factory in Skellefteå in Sweden.

Company: Vingroup

Location: Hà Tĩnh, Vietnam

Product: Batteries

Completion date: 2022

Cost: $174 million (£128 million)

The Vietnamese electric vehicle manufacturer is due to start production at its new factory later this year, where it will produce lithium batteries for its electric cars and buses. The factory will be designed to produce 10,000 battery packs per year initially, but in a second phase the manufacturer said it will upgrade to 1 million battery packs annually. VinFast, a member of Vingroup, is also planning on expanding operations to America and Germany.

Company: EMD Electronics

Location: Arizona, USA

Product: Gas and chemical delivery systems

Completion date: 2022

Cost: $28 million (£20.7 million)

The member of the multinational Merck Group is expanding operations with the construction of a new factory in Phoenix, Arizona, to manufacture equipment for its Delivery Systems & Services business. The factory is due to be operational by the end of the year, and will produce GASGUARD and CHEMGUARD systems for the company.

A bright future

These electronic component factory openings signal a great increase in business, and will aide in the easing of the component crisis. But it will take a while for these fabs to be operational.

Can’t wait? Lantek is there for all your electronic component needs. We have 30 years of expertise, and can help you where other suppliers cannot. Whether it’s day-to-day or obsolete electronic components, contact us today at sales@lantekcorp.com, or use the rapid enquiry form on our website.

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Electronic Components

Electronic component market to see continued growth by 2027

Electronic component market to see continued growth by 2027

The electronic component market is set to see continued growth over the next five years, with projections estimating greater demand than ever.

Several forecasts have converged with the same conclusion; demand for components is set to rocket as the world adopts more advanced technologies. 

This article will explore the latest research papers and market analysis from reputable sources. We will also explore why the demand for electronic components is set to soar and the supply chain’s challenges. 

Global components market 

The market analysis covered by Market Watch predicts that the global electronic components market will reach USD 600.31 billion by 2027, from USD 400.51 billion in 2020, a compound annual growth rate of 4.7% from 2021. 

Active components market 

Another market report, this time looking at active electronic components, predicts the active electronic components market will reach USD 519 billion by 2027 (£380bn pounds, converted 12/01/22), a CAGR of 4.82% from 2021. 

Passive and interconnecting components market 

According to 360 Research Reports, the passive and interconnecting electronic components market is projected to reach USD 35.89 billion in 2027, up from USD 28.79 billion in 2020, a compound annual growth rate of 3.2% from 2021. 

Semiconductor wafer market 

According to Research and Markets, the global semiconductor wafer market is predicted to reach USD 22.03 billion by 2027, rising at a market growth of 4.6% CAGR during the forecast period starting from 2021. 

Dynamic Random Access Memory (DRAM) market

Market Reports World predicts the global DRAM market will see extreme growth, growing at a CAGR of 9.86% between 2021 and 2027. The market was valued at USD 636.53 million in 2021 and will grow to nearly USD 700 million by 2027.  

Why is component demand set to increase so much?

The world is undergoing an extreme technological transformation that began with the first computers. Today, electronics are everywhere, and they are becoming ever more intricate and complex, requiring more and more components. 

Several technologies are converging, including semi-autonomous and electric vehicles, automation and robotics, 5G and internet upgrades, consumer electronics, and smart home appliances like EV chargers and hubs. 

This is a global transformation, from your house to the edge of the earth. Electronic components are seeing unprecedented demand because smarter, more capable devices are required to power the future. 

What challenges does the supply chain face? 

The two biggest challenges are shortages and obsolescence. 

Shortages are already impacting supply chains, with shortages of semiconductors, memory, actives, passives, and interconnecting components. 

As demand increases, supply will struggle to keep up. It will be the job of electronic components suppliers like Lantek and electronic component manufacturers to keep supply chains moving while demanding increases. 

Obsolescence refers to electronic components becoming obsolete. While some electronic components have lifespans of decades, others are replaced within a few years, which puts pressure on the supply chain from top to bottom. Email your inquiries to us today at sales@lantekcorp.com. Our specialized team is here to help.

In any case, the future is exciting, and the electronic components market will tick along as it always does. We’ll be here to keep oiling the machine. 

Categories
Electronic Components

How Can Companies Combat the Electronic Components Shortage?

How Can Companies Combat the Electronic Components Shortage?

Electronic components shortages show no signs of abating, fuelled by growing demand for electronics, limited availability of raw materials, soaring manufacturing prices, and lingering COVID-19 disruptions.

Shortages have hindered manufacturers since 2018, but things came to a head in 2020 with the COVID-19 pandemic disrupting supply chains.

The pandemic created an imbalance in supply chains, with demand for many components, from chips to actives and passives, outstripping supply. The question is, how can companies combat the electronic components shortage?

Partner with a distributor 

Electronic component distributors occupy a unique position in the supply chain, representing the manufacturer and customer. Distributors work for both parties to move components up and down the supply chain.

The benefit of working with a distributor is that your company will be in the mix for components not available through traditional channels.

For example, we specialize in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers. We can help you beat allocation challenges and long lead times.

Diversify suppliers

Diversity is the key to strengthening your supply chain. You need multiple sources for electronic components. It’s a good idea to have retail and distribution channels, so you have several routes should one supplier channel fail.

Diversity can also be found in geography. A supplier in your home country is essential, but so are suppliers close to the manufacturing source.  

Expand storage capabilities 

If your company can expand its storage capabilities for essential components, this is the simplest way to combat shortages. By storing large quantities of components, you create a supply separate from the chain.

The risk with expanding storage is procuring more components than you need, resulting in oversupply problems that incur heavy losses.  

Source equivalent components  

When components are unavailable, you can specify equivalents that meet your performance and financial specifications. Equivalent components perform the same job as your original components, but another company makes them.

A simple example is Samsung, which uses its own Exynos chip or a QUALCOMM chip in the same smartphone model depending on where the smartphone is sold.

Visibility and proactive planning 

Supply chains are complex beasts that require visibility to manage. Monthly stock updates are no longer sufficient; to combat shortages, you need real-time supplier updates and an inventory catalog to keep track of supply.

You can proactively plan component shipments and tap into price dips and new inventory when you have visibility over total supply.

Predict obsolescence

When electronic components become obsolete, manufacturers who haven’t planned for it scramble to find components that will work. This inevitably creates bottlenecks in the supply chain as many big companies compete for orders.

Obsolescence is predictable because all electronic components have a run date, and manufacturers update lifespans with inventory cataloging. You can avoid shortages and soaring prices for rare parts by predicting obsolescence.  

Have shortages? Speak to us

We’re here to help you deal with electronic component shortages. Contact us here.

Categories
component shortage Covid-19

Will continued global Covid measures extend electronic component shortages?

Continued global Covid measures will likely extend electronic component shortages, hindering manufacturers for several years.

The coronavirus pandemic has reshaped the global economy irreparably. Demand for electronic components has shifted, supply chains are broken, and new, more infectious variants threaten to bend normality further.  

It looks like the world is running out of electronic components, but there’s more to shortages than meets the eye.

The coronavirus pandemic is the biggest reason behind component shortages. With this single statement, we can deduce that shortages will subside when the pandemic subsides, freeing up supply chains through fewer restrictions.

However, we know the coronavirus isn’t going anywhere, and its persistence and ability to evolve means we must learn to live with it.

Add raw material shortages, soaring prices, low investment in new manufacturing facilities, and geopolitical issues related to supply and demand. Now we have a recipe for several years of component shortages.

How covid reshaped supply chains 

In May 2020, the first wave of the coronavirus pandemic hit most of the world. Countries locked down, and most sectors of the economy suffered.

Demand for some categories decreased, while demand for others increased. For instance, demand for vehicles evaporated while demand for home computers soared, creating an imbalance in the supply chain.

Estimates suggest that vehicle sales fell by 50% or more within a single month. In response, vehicle manufacturers scaled backorders for components.  

At the same time, demand for electronics chips and parts soared as more people spent time working from home.

When demand ramped back up for vehicles, there weren’t enough components to serve them and electronics. This is a story shared by multiple industries, with supply chains broken by supply and demand imbalances.

The matter wasn’t helped by local and national lockdowns, circuit breakers, new variants, and mitigating problems like floods and climate change.

There is no easy solution or fast fix 

The pandemic has also caused prices for common and rare earth metals to explode, increasing over 70% since the start of 2021 for some metals. These prices are made even worse by soaring inflation.

Trying to build supply chain resilience during the coronavirus pandemic is like trying to build a house of cards on a jittering floor. Just when you think you have it, something comes along that knocks it down, and you have to start over.  

The simple fact is that the world needs more factories to make components, and it needs to get a grip on inflation. The Covid pandemic is not going away, although the virus appears to be getting milder, which is a good sign for the future.

You can bolster your supply chain by working with an electronic component’s distributor like us, increasing your inventory, and quickly moving to equivalent components when you experience shortages of active and passive components.

Although global Covid measures are likely to extend electronic component shortages, there is no reason why they should stop you from doing business.

Contact Lantek today with all of your electronic component inquiries. Our team will go above and beyond to help you get the components you need.

Categories
component shortage

What is causing the surge in semiconductor and passive components?

As the world becomes smarter and more connected, the components used in electronic circuits are seeing a surge in demand.

Semiconductors and passive components (resistors, capacitors, inductors, transforms) are seeing a surge in demand as chip-heavy vehicles, consumer electronics and smart, Internet of Things devices are produced in larger quantities.

This demand is creating a shortage of semiconductors, integrated circuits and passive components. The situation today is that the factories that make certain components can’t make enough of them. This squeezes supply chains and ramps up the price, creating a high level of inflation passed down the supply chain.

The surge in semiconductor and passive component demand has reached an inflexion point. Demand has outstripped supply for many components, leading to car manufacturing lines shutting down and companies delaying product launches.

Tailwinds fuelling demand  
  • Smart vehicles
  • Consumer electronics
  • Military technology
  • Internet of Things
  • Data centres
  • 5G
  • Satellites
  • Artificial intelligence and robotics

At no other point in history has there been so many exciting technologies developing at the same time. However, while exciting, these technologies are putting strain on the electronic components supply chain.

Passives surge 

Passive components include resistors, capacitors, inductors, and transforms in various specifications. There are thousands of makes and unit models. They are essential to making electronic circuits. Without passives, there are no circuits!

Cars, electronics, satellites, 5G, data centres, Internet of Things, displays, and everything else powered by electricity, depends on passives. As devices get smarter, more components are needed, creating a cycle that will only go up.

Passives shortage 

Certain diodes, transistors and resistors are in shorter supply than in 2020. This is partly because of the coronavirus pandemic, which impacted manufacturing lines. Still, many manufacturers also shifted manufacturing investment to active components with a higher margin, creating a supply imbalance.

Even without these significant bottlenecks, the supply of passive components is downward while demand goes up. For example, a typical smartphone requires over 1,000 capacitors and cars require around 22,000 MLCCs alone. We’re talking billions of passive components in just two sectors.

Semiconductor surge 

Semiconductors (chips, in this case, not the materials) are integrated circuits produced on a piece of silicon. On the chip, transistors act as electrical switches that can turn a current on or off. So, semiconductors and passives are linked.

Chips are effectively the brains of every computing device. Demand for chips is increasing as circuits become more complex. While chips are getting smaller, manufacturing output is only slowly increasing, creating a supply shortage.

Semiconductor shortage 

The semiconductor shortage was years in the making, but things came to a head when the coronavirus pandemic hit.

At the start of the pandemic, vehicles sales dived. In response, manufacturers cancelled orders for semiconductors and other parts. Meanwhile, electronics sales exploded, filling the semiconductor order book left by the automotive sector. When vehicle manufacturing ramped up again, there weren’t enough chips to go around.

Manufacturing limitations are confounding the problem. It takes 3-4 years to open a semiconductor foundry or fabless plant, but investment in new plants in 2018 and 2019 was low. So, new plants are few and far between.

 

 

Categories
Electronic Components

Obsolescence Management Before It Becomes A Problem

Like the device you are reading this on, all electronic components become obsolete eventually. As a supply chain manager, it is your job to manage obsolescence and make sure it doesn’t become a problem for your company.

The three reasons for electronic component obsolescence are short product life cycles, innovation, and increased demand.

Short product life cycles fuel update cycles that demand better components, innovation fuels new component releases, and increased demand squeezes supply chains, creating new batches of components that replace the old.

The good news is obsolescence management isn’t rocket science. With planning, you can safeguard your supply chain from the inevitable. Cyclops can help you do this in various ways, working with you to keep your supply chains moving.

How Cyclops helps you manage obsolescence 

With technologies advancing rapidly, the rate of electronic component obsolescence is picking up pace. Life cycles are getting shorter for many components, and shortages are challenging obsolescence management plans.

At Cyclops Electronics, we specialise in the procurement of electronic components, working with global distributors to source tens of millions of parts. Our staff go further than most to find your obsolete parts, and if we can’t source the exact parts you need, we will work just as hard to find appropriate alternatives. 

Here’s how we help you manage obsolescence:

Proactive planning

We keep tabs on component supplies for you and provide timely reports detailing risks. By keeping you in the loop, you get a bird’s eye view of your electronic components, giving you a competitive edge and greater buying power.

Obsolete component sourcing 

Obsolete components might no longer be made, but we hold 177,232 line items in our warehouse and 14 million parts globally. There’s a strong possibility we have the obsolete, discontinued components you need ready to go.

Equivalents 

When obsolete components are unavailable, we can specify equivalents that meet your performance and financial specifications. We can cross-reference many components, such as semiconductors, to find exact equivalents.

Integrated advice 

We can help you identify and mitigate risk when parts and spares become obsolete by integrating with your mitigation plan. We can replace obsolete parts as they age, providing an automated, streamlined obsolescence solution.

Obsolescence is inevitable but manageable 

Component obsolescence occurs when an old component is phased out. Without management, this event can disrupt a supply chain, costing businesses tens of millions (or billions) in lost revenues and corporate costs.

A great example of this is any company that manufactures equipment and supports it over several years, like a boiler company. Electric boilers are supported for around ten years, so the components have to be replaceable over that time.

Obsolescence is a problem because it sends ripples through the supply chain, requiring ongoing management to foresee events and mitigate risks. Cyclops Electronics has seen all this before across all sectors.

Speak with us about obsolescence management 

We’re here to help you manage supply chain risks and deal with obsolescence before it becomes a problem. Contact us here.

Categories
component shortage Electronic Components

Semiconductor Supply Chain Will Remain Vulnerable Without Robust Investment in Advanced Packaging

new U.S. study has found that the advanced semiconductor packaging supply chain needs strengthening to meet the increasing demand for chips.

According to the report, without robust federal investment, the semiconductor supply chain in the U.S. faces an uphill battle to meet demand.

The study also highlights the crucial role of advanced packaging in driving innovation in semiconductor designs. At present, most of the chips in the U.S. are sent abroad for packaging and assembly into finished products. By moving packaging to North America, the entire electronics ecosystem can be improved.

“Semiconductor chips are critically important, which is why IPC supports full funding for the CHIPS for America Act. But chips can’t function on their own. They need to be packaged and interconnected with other electronic components to power the technology we all rely on, from cell phones to automobiles and beyond,” said John Mitchell, IPC president and CEO. “The data in this report shows that North America is well behind Asia in the advanced packaging of chips and in other key parts of the electronics manufacturing ecosystem.”

The big players in the U.S. include Applied Materials, Amkor Technology, Ayar Labs, Lam Research, Microsemi Semiconductor and KLA-Tencor Corporation. These companies have seen unprecedented demand for semiconductor packaging, with growth predicted to rise as the world becomes smarter and more connected.

Other report findings 

The study also found that while the U.S. can design cutting-edge electronics, it lacks the capabilities to make them. This is creating an overreliance on foreign companies, including companies in China, creating considerable risk.

Looking at the most recent data, the study highlights that North America’s share of global advanced semiconductor packaging production is just 3 per cent. In other words, at present, the U.S. is incapable of assembling its own chips.

The study concludes that the U.S. also needs to invest in developing and producing advanced integrated circuit substrates. Advanced integrated circuit substrates are crucial components for packaging circuit chips. Currently, the U.S. has nascent capabilities, putting it behind Europe, China and most other countries.

What can we deduce from the report? That the U.S. is behind in most aspects of semiconductor packaging. Decades of low investment and overseas partnerships have led to a manufacturing ecosystem devoid of domestic talent.

“The findings of this report make clear that, as a result of decades of offshoring, the United States’ semiconductor supply chains remain vulnerable, even with the new federal funding that’s expected,” says Jan Vardaman, president and founder of TechSearch International and co-author of the report. “It’s critical that the U.S. government recognises and responds to industry needs on these systemic vulnerabilities, particularly integrated circuit substrates, where domestic capabilities are severely lacking.”

As the U.S. comes to terms with its poor manufacturing ecosystem, China is ramping up assembly plants. In the face of increasing competition, the U.S. must focus on domestic investment in the near and medium-term. Without robust investment, they could fall further behind and lose out to their biggest competitors.

Categories
component shortage

A raw materials shortage is set to hit the EV battery supply chain in 2022

A raw materials shortage is set to hit the EV battery supply chain in 2022

The automotive sector is on red alert amid speculation that raw material shortages will impact the EV battery supply chain in 2022.

The lithium-ion batteries in electric vehicles use a combination of rare earth metals like neodymium, praseodymium, dysprosium, and common and uncommon minerals like cobalt and lithium in great quantities.

Bloomberg blew the whistle in July, predicting that raw material shortages for batteries will be the next big test after the semiconductor crisis.

Recent reports back this, with the global lithium shortage giving EV manufacturers pause for concern. Sky News reports the world needs four new lithium mines per year to make supply meet demand, but the pipeline does not come close to meeting this requirement.

Some EV manufacturers are hoarding raw materials, and the world’s biggest electric car maker, Tesla, is moving away from cobalt to LFP chemistry because they consider cobalt to be the biggest supply chain risk for EV batteries.

The EV industry has a battery problem 

Most electric vehicles have a lithium-ion battery pack because Li-ion has a high energy density for its weight and can charge and discharge at any state of charge. The technology is proven, and manufacturing Li-ion batteries is easy.

However, the growing demand for electric vehicles is fueling demand for EV battery raw materials like lithium, cobalt, nickel, manganese, and rare earth metals.

The mines in operation today are not sufficient to make supply meet demand one year from now, which is a cause of great concern in the automotive sector.

Additional factors could confound the problem:

  • Price volatility in raw materials (the price of rare earth metals has exploded, moving nearly 50% higher on average since March)
  • Battery composition changes (while lithium-ion is the top dog today, solid-state batteries use a lot more nickel and cobalt)
  • Trade tensions between countries (China controls 55% of global production and 85% refining output of rare earth metals)

Making supply meet demand

Accurate forecasting is crucial to making supply meet demand. Manufacturers must anticipate fluctuations in the supply chain and make allowances for events.

For instance, no one can predict the next coronavirus pandemic, but a 25% drop in raw material mining output can be incorporated into forecasts.

Manufacturers might also like to investigate alternative battery chemistries. As we mentioned before, Tesla is switching the chemistry of its long-range batteries to reduce dependency on cobalt. Other battery manufacturers can do the same to fortify their supply chains.

The downside to switching chemistries is it is only possible following extensive (and expensive) research and development. The world’s leading EV battery manufacturers will not invest in this area without proof it will turn a profit.

EV battery recycling is another important future step. Swedish company Northolt made the world’s first fully recycled EV battery in November. Today, however, Li-ion battery recycling is not economical on an industrial scale.

Another option is limiting EV battery production, either in total volume or in cell volume (installing smaller batteries). With EV batteries becoming more efficient, smaller capacities might not be detrimental to range in the future.

Categories
component shortage Electronic Components

Global chip shortage to impact electronic retailers holiday season

The holiday season usually marks the start of an electronics sales boon for retailers. Consumers buy more electronics in the lead up to Christmas than at any other time of the year. This year, however, things are different.

This holiday season, the global chip shortage is set to impact electronic retailers, with shortages of popular products like games consoles, graphics cards, smartphones, laptops and tablets likely to persist through to 2022.

Due to problems buying stock, most retailers are bracing themselves for low Christmas electronics goods sales. The global chip shortage means fewer electronics goods are being made, so there is a long lead time from suppliers – some retailers are waiting several months for new stock, only for it to sell out within days.

Consumers should start holiday shopping now 

Chips are in critically short supply this year, which has reduced manufacturing output at many of the world’s biggest factories.

Companies like Samsung, Apple, Intel and AMD are experiencing problems getting the chips they need. Today, some chips have delays of over a year, and inventory supplies for chips are running low, putting pressure on supply chains.

All of this means there is a shortage of in-demand electronics goods, from games consoles to smartwatches. The message is simple – consumers should start holiday shopping now to ensure they can get hold of the electronics they want.

It is also crucial that consumers don’t take stock levels for granted. What’s in stock today might be out of stock tomorrow, and many retailers have lead times of several months for new stock. So, if you need it, you should buy it while you can.

Is the chip shortage being blown out of proportion? 

We are so used to next-day Amazon delivery and seeing shiny electronics on store shelves that chip shortages appear to be a fantasy.

However, the chip shortage is real – manufacturers are struggling to create enough chips, and suppliers can’t get hold of the inventory they need.

Categories
component shortage

The tech industry is bracing for a potential shortage of passive electronic components

By now, everyone has heard of the global semiconductor shortage. Still, the tech industry is bracing itself for an altogether larger shortage of passive electronic components that could reduce manufacturing output across multiple categories.

Passive components do not generate energy but can store and dissipate it. They include resistors, inductors (coils), capacitors, transformers, and diodes, connecting to active elements in circuits. Passives are necessary for circuit architecture, so the shortage is bad news for the electronics industry as a whole.

The current state of the passive component shortage 

The truth is there has been a shortage of certain passive components since the coronavirus pandemic hit in 2020, particularly with multilayer ceramic capacitors (MLCCs), which can be difficult to get hold of in large quantities.

Certain diodes, transistors and resistors are also in shorter supply than they were in 2019, partly because of the pandemic and a shift in manufacturing investment for active components, which have a higher margin.

You also need to look at consumer trends (what people are buying). Smartphone and smartwatch sales are higher than ever, and smart ‘Internet of Things’ devices are growing in popularity rapidly, not to mention in availability.

These devices require a lot of passive components. For example, a typical smartphone requires over 1,000 capacitors. Cars are also huge consumers of passive components, with an electric car requiring around 22,000 MLCCs alone.

The trend for next-generation technology adoption is up across all categories, be it the Internet of Things, edge computing, semi-autonomous cars and 5G. Passive components are in more demand than ever at a time when supplies are under pressure.

Price rises are now inevitable 

The price for most passive components has risen by the largest amount in over a decade in 2021, caused by supply and demand economics and a price explosion for common materials like tin, aluminium and copper, as well as rare earth metals.

While some suppliers can afford to take a hit on profits, for most, raising prices is inevitable to ensure the viability of operations.

With higher component prices and greater shortages, it is more important than ever for companies to bolster their supply chains. Complacency is dangerous in today’s market, and no company is immune to disruption.

How to beat the passive components shortage 

The passive components shortage is likely to get worse before it gets better, but there are several ways you can bolster your supply chain:

  • Equivalents: Specifying equivalent passive components is a sound way to keep your supply chain moving. When a specific passive component isn’t available, an equivalent may be available that functions in exactly the same way.
  • Ditch outdated components: Outdated components have limited or no manufacturing output when discontinued. Upgrading to modern components that are manufactured in larger quantities can help you meet demand.
  • Partner with a global distributor: Global components distributors like us source and deliver day-to-day, shortage, hard-to-find, and obsolete electronic components. We can help keep your supply chain moving in uncertain times. Contact us today with your inquiries. 
Categories
component shortage Electronic Components

Global silicon chip shortage will last until at least 2023

How long will the global silicon chip shortage last? If you were to ask ten CEO’s of leading technology companies, you’d probably get ten different answers.

However, there’s one timeframe most CEO’s quote…

2023 is the date CEO’s are optimistic about 

Intel’s CEO, Pat Gelsinger, has given us a realistic timeframe for the chip shortage to end – he says the chip shortage won’t end until 2023.

“We’re in the worst of it now; every quarter next year, we’ll get incrementally better, but we’re not going to have supply-demand balance until 2023,” Gelsinger told CNBC.

Gelsinger’s thoughts echo those of Glenn O’Donnell, a vice president research director at advisory firm Forrester, who says the chip shortage will last until 2022.

“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” O’Donnell wrote in a blog in March.

Daimler chairman Ola Källenius also believes the chip shortage could last until 2023.

“Several chip suppliers have been referring to structural problems with demand,” Källenius told reporters during a roundtable event ahead of the Munich IAA car show. “This could influence 2022 and (the situation) may be more relaxed in 2023.”

What will chip demand look like in 2022-2023?

In July, the CEO of STMicroelectronics provided insight into what we can expect in 2022-2023, “Things will improve in 2022 gradually, but we will return to a normal situation … not before the first half of 2023,” he said in an interview.

The global silicon chip shortage has led to car plants shutting down, paused manufacturing lines and delayed product launches. It isn’t a short-term problem, and no one knows for sure when supply will start catching up with demand.

All industries and companies that use chips have been affected by the shortage – even Samsung, the world’s biggest computer-chip manufacturer, has been affected by it, delaying the launch of several Galaxy and Note smartphones.

Most experts agree that 2022 will echo 2021, with moderate-extreme shortages of integrated circuits and chips, as well as certain active and passive components. Prices are also expected to rise in line with raw material costs.

2023 may be the year that supply starts meeting demand, but it will require the mass opening of foundries and factories. Investment in new plants and manufacturing lines is ongoing, with new fabs set to open in the next two years.

In 2023, we hope to see regular chip inventory levels and average delays of about three months to replenish components. At the moment, some components have delays over a year, and inventory supplies for chips are running low.

Keeping supply chains moving

The best way to keep supply chains moving is to partner with an electronic components distributor like us. We can source chips from around the world, tapping into stockpiles and inventory that isn’t available to the average company.

If you are experiencing an electronic component shortage, we can help. Email us if you have any questions or call us on 1-973-579-8100 to chat with our team.

Categories
Trade Rules

Incoterms Explained

Incoterms (International Commercial Terms) are a set of trade rules issued by the International Chamber of Commerce to define the responsibilities of sellers and buyers globally to reduce confusion in cross-border trade.

Incoterms are 11 internationally recognised rules that define things like who is responsible for managing shipment and who is responsible for customs clearance. The aim is to enable smooth trade and transactions.

This article will provide an explainer of the 11 Incoterms.

Incoterms for Any Mode of Transport

There are seven Incoterms for Any Mode of Transport:

  • EXW (Ex Works)– This Incoterm makes export clearance the responsibility of the buyer, except when the country overrules it by law (such as the U.S.).
  • FCA (Free Carrier)– The seller is responsible for making the goods available at its own premises or at a named place. The seller is responsible for export clearance and security.
  • CPT (Carriage Paid To)– The seller clears goods for transport and delivers them for shipment, assuming responsibility for delivery to the named destination.
  • CIP (Carriage and Insurance Paid To)– The seller is responsible for delivery and insurance of delivery, after which risk transfers to the buyer.
  • DAP (Delivered at Place)– The seller bears all risks associated with delivery but not unloading.
  • DPU (Delivered at Place Unloaded)– The seller bears all risks associated with delivery and unloading.
  • DDP (Delivered Duty Paid)– The seller bears all risks associated with customs duty and delivery, as well as unloading.
Incoterms for Sea and Inland Waterway Transport

There are four Incoterms for Sea and Inland Waterway Transport:

  • FAS (Free Alongside Ship)– The seller clears goods for export and delivers them for shipment alongside the vessel, after which the buyer assumes responsibility.
  • FOB (Free on Board)– The seller clears goods for export and delivers them for shipment on the vessel, after which the buyer assumes responsibility.
  • CFR (Cost and Freight)– The seller clears goods for export and assumes responsibility up until the goods are loaded on the vessel.
  • CIF (Cost, Insurance and Freight)– The seller clears goods for export and bears the cost of freight and insurance. Buyer assumes responsibility for unloading.
Understanding Incoterms 

Incoterms are designed to clearly define who is responsible for goods at different points of importation and exportation.

When explicitly incorporated by parties into a sales contract, Incoterms become a legally enforceable part of that sales contract.

In each Incoterm, a statement is provided for the seller’s responsibility to provide goods and a commercial invoice. A corresponding statement stipulates that the buyer pay the price of goods as provided in the contract of sale.

The limitation with Incoterms is they do not address all conditions of a sale, and they do not address liability or dispute resolution. Instead, they are a framework that importers and exporters can use to ensure smooth transactions.

To find out more about Incoterms, the ICC has an explainer article, or you can download the ICC’s free eBook for a detailed guide.

Categories
Electronic Components

Why is chip sovereignty so important?

The US and EU are planning for chip sovereignty, aiming to defend domestic chip supplies and move manufacturing back home.

At first glance this is a tall order, considering most chips are manufactured in China and China controls 55% of rare earth metal production, but it is no less crucial to ensure that the Western world has access to the chips it needs.

The need for chip sovereignty

As the electronics industry battles on with chip shortages, we are seeing car plants cut production and companies delay product launches.

These are only a few examples of measures being applied like a band aid over a supply chains that have been bleeding for years.

We are in a situation where electronic components manufacturers are running at 99-100% capacity. Demand has soared for all types of components, from chips and memory to diodes and displays, squeezing supply chains.

Quite simply, demand is outstripping supply.

Many of the problems in the supply chain are geopolitical and logistical in nature, so by moving manufacturing back home, nations like the US and the EU will be able to control the supply chain (or most of it) and make supply meet demand.

What’s happening?

The EU will legislate to push for chip sovereignty with the forthcoming “European Chips Act”. It aims to stop European countries from competing with each other for chips, instead having them work together to compete globally.

The US isn’t legislating for chip sovereignty, but the Biden administration used its first budget proposal to Congress to call for domestic funding to fight semiconductor shortages with figures up to $50 billion being touted.

The UK is at odds with the US and EU with no chip sovereignty in sight.

Simply put, the UK is selling off chip firms, with $42 billion sold since 2010 (figures from US research). For example, In July, the UK’s largest chip plant was acquired by Nexperia – a Dutch firm wholly owned by Shanghai-based Wingtech.

This raises concerns over the future of UK chip manufacturing. Industry funding is seriously lacking too, putting the UK firmly behind the US and EU.

Companies are a successful case study 

As countries continue to struggle to meet demand for chips, some companies have taken matters into their own hands.

Apple produces their own chip called the M1 for the MacBook Air and iMac, and Google is doing the same with the Tensor chip, used in the Pixel 6 smartphone.

By moving away from Intel and Qualcomm respectively, Apple and Google have taken greater control over their supply chains, cutting out many geopolitical and logistical issues and unlocking greater pricing power.

With the global chip shortage showing no signs of abating and rare earth metal prices soaring, supply chains are only going to get squeezed more in the near future.

Chip sovereignty will be important for nations to meet demand and reduce reliance on China, Taiwan, and other countries a very long way away.

However, while the EU legislates for chip sovereignty, and the Biden administration pushes Congress for domestic chip funding, the UK continues to sell off chip firms to foreign investors. This will bite down hard when chip imports take a hit.

Categories
Electronic Components

Memory suppliers to benefit from strong demand and supplier shortages

While the downsides to electronic components shortages are well known, business is booming for smaller memory suppliers.

Sales of Samsung DRAM grew 26% in Q2 2021 without meaningful production capacity growth, and as supply/demand imbalances grow, memory suppliers like Samsung, Micron and others are turning to smaller suppliers to fill gaps.

As chip shortages continue, demand grows. Order books get filled off the page, creating longer lead times (up to 40-weeks) and extending standing orders. This is bad news for the end-product manufacturer but great news for suppliers, who see sales rise and bids increase to fuel record turnover and, in some cases, net profits.

The sector as a whole is booming, but no better example of taking the bull by the horns exists than Alliance Memory.  

Alliance Memory is a US-based 30-year-old DRAM manufacturer, billed as a legacy SRAM supplier and a leading domestic supplier of DRAM and flash memory. The company’s run rate in 2021 is double what it was in 2020.

In an interview with EPS News, Alliance Memory CEO David Bagby explains why: “we went out to customers struggling to get Samsung. Now we have maybe the best representation of DRAM and SRAM product of anybody out there.”

Memory upturn forecast to continue

IC Insights, the foremost authority on memory and chip demand, has predicted a new record high for memory demand in 2022.

Stronger DRAM pricing is expected to lift total memory revenue 23% in 2021 to $155.2 billion. The memory upturn is forecast to continue into 2022 to $180.4 billion, surpassing the all-time high of $163.3 billion set in 2018.

Demand for memory, including DRAM, SRAM, and flash, is being driven by economic recovery and the transition to a digital economy. Unlike other technological cycles, the current cycle of digitalization has weight behind it, fueled by innovations in data centers, 5G and space networks, AI, robotics and IoT.

Sequentially, the average price of DRAM rose 8% in the first quarter of 2021. Another increase of 18-23% in Q2 sent memory suppliers into a spin. Demand is outstripping supply, creating a perfect storm for continued price increases.

Price increases expected to continue until late 2022

The price of memory is more sensitive to other electronic components because supply is controlled by a few big players. Smaller memory suppliers fill in gaps in supply, but the big guns like Samsung and Micron rule the roost.

When demand outstrips supply at the big guns, prices explode. We’ve seen it several times before, such as the memory price increase of 2018. Prices fell again in 2019, recovered a little in 2020, then soared again this year.

Memory is a commodity and companies are willing to pay big to get a hold of it. Bidding wars are not uncommon and 40-week lead times are normal today.

However, while the memory upturn is predicted to continue into 2022, Gartner says memory prices will dive at the end of the year, predicting that an “oversupply” of memory chips will develop as demand eases and supply increases.

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component shortage

Electronic Component Shortage update

The ongoing electronic component shortage is one of the biggest challenges global supply chains face today.  With demand for many components, from chips to actives and passives, well and truly outstripping supply.

A lot has happened in the last month, with new research and analyst insights pointing to when demand might ease (hint: it won’t be this year).

Here’s your latest electronic component shortage update:

Chip lead times hit all-time high

According to Susquehanna Financial Group, chip lead times hit an all-time high of 21-weeks in September, up from 20.2 weeks in August and 18 weeks in July. However, in a research note, Susquehanna analyst Chris Rolland said that while lead times for some chips got worse, lead times for others like power management chips saw relief.

Gartner says global chip shortage will persist until Q2 2022

Gartner predicts the global semiconductor shortage will persist through Q1 2022 but recover to normal levels by the second quarter of 2022. They rate the current shortage as moderate and the shortages of early 2021 as severe.

Chipmakers should brace for ‘oversupply’ in 2023

Analyst firm IDC predicts that the global chip shortage may well turn into an oversupply situation in 2023, sending prices diving. They say the industry will see normalisation by the middle of 2022, with a potential for overcapacity in 2023.

EU pushes for chip sovereignty

The EU will legislate for chip sovereignty with the forthcoming “European Chips Act”, bringing together the EU’s semiconductor research, design, and testing capabilities, so that EU countries can make demand meet supply as one nation. “Europe cannot and will not lag behind,” the EU said in a statement on the Chips Act.

Ford Europe predicts chip shortages could continue to 2024

In an interview with CNBC, Ford Europe chairman of the management board Gunnar Herrmann estimated the chip shortage could continue through to 2024. Herrmann also revealed a new company crisis in raw materials. “It’s not only semiconductors,” he says, “you find shortages or constraints all over the place.”

Tesla’s China output halted on chips shortage

Tesla temporarily halted some output at its Shanghai factory for four days in August due to the chips shortage, shutting part of the production line for electronic control units (ECUs), a small but significant action that cost it millions in revenue.

New forecast says chip shortage to cost car industry $210 billion

The total estimated cost of the chips shortage to the car industry keeps rising, with a new report from AlixPartners predicting a global cost of $210 billion. This is nearly double what their first report predicted in May ($110 billion).

Counterfeit chips penetrating the supply chain

As a result of the chips shortage, some manufacturers are turning to riskier supply channels, leaving themselves vulnerable to counterfeits. As ZDNet reports, this puts low-volume manufacturers whose supply chains are less established at risk.

If you are worried about counterfeits in your supply chain, read our 8 Step Guide To Buying Electronic Components With Confidence and Avoiding Counterfeits.

If you are struggling to find those hard to find and obsolete components. Contact Lantek corporation today. Call 1-973-579-81000, email sales@lantekcorp.com or visit our website https://www.lantekcorp.com/

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Electronic Components

Rare earth metal prices explode

Prices for rare earth metals have exploded over the last 12 months, moving nearly 50% higher on average since March.

This development could push prices of electronics components higher than ever, as a perfect storm of expensive raw materials + limited production capacity + higher demand = rocketing prices.

As we are seeing with the global semiconductor shortage, fluctuations in supply chains ripple through the electronics industry.

Electronic component shortages have, in part, been caused by reduced mining quota for raw materials including rare earth metals. The problem now isn’t a lack of mining, but the soaring demand for rare earth metals.

The high price reflects strong demand. Rare earth metals are used in most electronic components and devices, from integrated circuits to displays, vibration motors, and storage, so it’s easy to see why demand is so strong. 

For example, materials like neodymium and praseodymium used to make magnets have seen a 73% increase in demand in 2021. Holmium oxide used in sensors, terbium oxide used in displays, and cobalt used in batteries have also seen increases.

Why have prices exploded?

China is the only country in the world with a complete supply chain for rare earth metals from mining, to refining, to processing. With over 55% of global production and 85% refining output, the world depends on them for rare earth metals.

In January, Beijing hinted at tightening controls for earth metal exports, triggering panic across the world and sending prices soaring.

For those of you who remember, rare earth prices exploded in 2011 when China’s export volumes collapsed. China cut export quotas of the 17 rare earth metals and raised tariffs on exports, sending prices soaring by more than 50%.

Talk about déjà vu!

Another factor for the price explosion is supply and demand. Even with China’s hints, demand for rare earth metals is outstripping supply. The world is using more electronics than at any time in its history, and rare earth metals are needed to make more of them.

It isn’t only relatively unknown materials like neodymium and praseodymium that are surging in price, but also more commonly known materials like tin, aluminum, and copper, which have also surged in price in 2021.

So, in a nutshell, demand for rare earth metals is outstripping supply, and China (which has significant control over rare earth metals) has hinted at tightening exports, sending a shockwave through the supply chain.

The issue is bad and will take time to resolve. The United States is the second-biggest producer of rare-earth metals, and in February, President Joe Biden announced a review into domestic supply chains for rare earth, medical devices, chips, and other resources, with a $30 million initiative to secure new supply chains.

Unfortunately for the world, China’s control of 55% of global production and 85% of refining output for rare earth metals means they control the market. Missteps, problems at home, and hints about tightening controls have already sent rare earth metal prices soaring, and it stands to reason they will continue creeping higher in the near term. 

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Electronic Components

Communications including 5G will drive the components market

According to IC Insights, the communication sector’s share of integrated circuit sales reached 35% in 2020 and is expected to grow to 36.5% by 2025. For perspective, the automotive sector’s share of integrated circuit sales was 7.5% in 2020 and will grow to 9.8% by 2025 – significantly less than communications.

Industry tailwinds

What’s driving such high demand for ICs in the communications sector?

There are four big tailwinds:

  • 5G
  • Edge computing
  • Internet of Things
  • AI (artificial intelligence), MI (machine learning) and data analytics

5G

5G is the main driver for component demands with 5G infrastructure rollout happening slowly, but surely. We are nowhere near a complete version of 5G, and networks are in a race against time to deliver a reliable service.

The first step for networks is replacing low-band 4G spectrum, followed by mid-band spectrum that uses 2.5, 3.5 and 4.5 GHz, enabling faster data speeds. The final step is the rollout of millimetre wave, which enables true 5G speeds. Millimetre wave also happens to be a precursor for next generation 6G.

On top of 5G infrastructure rollout you have more 5G-enabled devices coming to market, such as smartphones, tablets, and laptops. Smartphones. in particular, are leading the way for 5G adoption, putting faster data in our hands.

The rapid growth in IC demand in the communications sector also stretches to other components like modems, memory, and antennas. 5G isn’t just an IC boon – it’s a boon for all the electronic components needed for 5G. 

Edge computing

Second to 5G we have edge computing, which by a miraculous twist of fate is needed to deliver a 5G experience (and needs a whole lot of components).

Edge computing puts computing capabilities relatively close to end users and/or IoT endpoints. In doing so, it reduces latency, while 5G delivers faster data speeds, providing a seamless experience on certain devices.

Internet of Things

IoT describes a network of connected smart devices that communicate with each other. For example, a vital sign monitor in a hospital could communicate with medicine dispensers and automate medicine dosages for doctors.

The Internet of Things has been talked about as a trend for several years, but we now have real applications that are useful.

AI (artificial intelligence), MI (machine learning) and data analytics

AI (artificial intelligence), MI (machine learning) and data analytics require enormous, powerful data centres to power them. These data centres require significant investment in chips, memory, and other electronic components.

Also, AI, MI and data analytics need cloud computing, edge computing and in some cases 5G to deliver a real-time experience.

The future

By 2025, the communications sector is forecast to have a 36.5% usage share of integrated circuits, making it the biggest consumer of semiconductors.

Demand for integrated circuits, discrete circuits, optoelectronics and sensors will grow to an all-time highs thanks to the industry tailwinds in this article. The future is bright, but to stay ahead, a robust supply chain will be needed.

Electronic components distributors like Lantek Corporation are helping supply the demand, while the communications sector battles to secure chip orders.

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component shortage Electronic Components

Causes of IC Shortage

There’s a serious shortage of integrated circuits affecting every corner of the electronics’ world. Discrete circuits, optoelectronics and sensors are also experiencing shortages, putting pressure on supply chains from top to bottom.

What are the causes of IC shortages? This article will explore the main causes, so that you can understand what’s going on.

Reshaped demand

The Coronavirus pandemic reshaped demand for semiconductors, shifting automotive demand to device demand (car plants shut down, while demand for electronic devices soared with stay at home and remote working).

Now that automotive production is ramping back up, there aren’t enough ICs to go around, causing a shortage across all industry sectors.

The pandemic also caused short-term, unplanned plant shutdowns and labor shortages, reducing the number of ICs manufactured.

Logistics

The logistics industry is still recovering from COVID-induced shutdowns and travel restrictions. While air and sea freight is running at good capacity, road transport is proving difficult across borders, creating supply constraints.

In 2020, air cargo capacity saw a 20% decline. In 2021, it’s back to normal, but you still have the problem of moving components on the ground.

In the USA, there is also a serious driver shortage underway that is affecting everything from electronic components to supermarket shelves.

Lead times

The amount of time that passes between ordering semiconductors and taking delivery has increased to record levels. In July 2021, it surpassed 20 weeks, the highest wait time since the start of the year and eight days longer than June.

Longer lead times can be caused by a variety of factors, but in this case it’s caused by factories running at capacity with no room for acceleration. Labor shortages and problems getting hold of materials are exasperating the problem.

Raw materials

A shortage of raw materials is causing big problems for semiconductor manufacturers, who can’t get the materials they need to meet demand. Shortages of raw materials and high raw material prices are combining to squeeze production.

The soaring price of raw materials is also increasing the prices of ICs, with some components seeing a yearly price increase up to 40%. These costs will eventually be passed on to the consumer who will have to stomach higher prices.

Stockpiling

Whether we’re talking about the communications, automotive or consumer electronics sector, IC stockpiling has exploded. The world’s biggest manufacturers have stockpiled huge quantities of components for themselves.

This hoarding of components by nervous manufacturers eager to secure inventory takes a significant volume of components off the open market, squeezes the supply chain, and gives the biggest players an upper hand over everyone else.   

Trade sanctions

For all their bad press, China makes a lot of chips – around a billion a day. Their biggest chipmaker, SMIC, was hit by US sanctions in late 2020, eliminating SMIC chips from the US market. You’d think this would mean more chips for the rest of the world, but China recoiled and went defensive, keeping most of the chips for themselves.

US sanctions twisted the global supply chain out of shape, creating volatility in an industry that was already in turmoil from the pandemic.

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component shortage

Chip Shortage causing car manufacturers to cut production levels

A week doesn’t pass without an announcement from a car manufacturer that they are cutting production levels. Idling shifts and even entire factories has become normal for an industry that thrives on maximising output. 

Volkswagen, Ford, General Motors, Hyundai and Toyota have cut production levels to prioritise their most lucrative models. In some cases, plants have shut down for weeks at a time to allow supply chains to catch up to one another.

To understand how big this is, a 1-2 week plant shutdown will cost a car manufacturer millions of pounds at the very least. No manufacturer would willingly do this, but the global chip shortage is forcing them to.

Chip shortage in numbers

Just 53,438 cars rolled off assembly lines in the UK in July 2021, making it the lowest output in the month of July since 1956.

In June 2021, data from the Society of Motor Manufacturers and Traders (SMMT) showed that car production was down 52.6% on the same month in 2019. Telling us that we’re a long way off reaching pre-pandemic levels.

According to research firm AlixPartners. The chip shortage will collectively cost the auto industry $110 billion in revenue in 2021. A revised figure and an increase of 81.5% over the same firm’s figures in late January.

More telling figures come from Fitch Ratings, who estimate the chip shortage will cost automakers 5% of production. North America and Europe will be the hardest hit, with Asia and China coming in third and fourth respectively.

What’s happening with chips!?

The automotive sector has been hit harder than any other by the chip shortage due to cancelling orders for chips at the start of the pandemic.

Anticipating a slowdown that would last months, most car markers cancelled orders for chips. Semiconductor manufacturers filled order books with orders from companies making smartphones, laptops and other devices.

When the automotive sector bounced back sooner than expected, semiconductor manufacturers had hardly any capacity to meet demand. This has led to the situation today, where car makers can’t secure the inventory they need. 

Now, there are not enough chips, foundries are running at 99% capacity and new foundries take years and billions in investment to set up.

Changing the production line for a chip costs tens of millions and takes months, labour shortages are causing a manpower crisis, and the pandemic is causing short-term factory shutdowns at foundries and fabless plants.

When will the global chip shortage end?

It will take at least five years for the global chip shortage to subside. Assuming investment in new foundries begins in 2021/22. New factories are the only the way out of the shortage because demand for chips is only going to increase.

Opinions on when the shortage will end vary from early 2023 to 2025. The last 18 months has tested supply chains and wreaked havoc on production, but the automotive industry is experienced enough to cope with future problems.

When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence or quality issues, contact Lantek Corporation for a fast response to your enquiries and reliable on-time delivery. Our Team are here to help. 

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component shortage Electronic Components

Component Prices Rise 10% to 40% – But why?

While component price increases are expected when demand surpasses supply, the scale of recent increases has come as a shock to many businesses.

In its Q3 Commodity Intelligence Quarterly, CMarket intelligence platform Supplyframe reports that some electronic components have seen prices rise by as much as 40%, making it uneconomical for products to be made.  

Specifically, semiconductors, memory and modems are seeing 10 to 40% price increases, exceeding what most analysts envisioned for 2021.

Why are prices rising?

Price rises start with materials. There are long lead times for many raw materials, causing shortages. Add rising commodity prices and difficulties transporting products and you have a disrupted manufacturing economy.

You also must factor in the impact of the coronavirus pandemic, which has caused labor shortages and disrupted the manufacturing economy with shutdowns.

Logistics is also a big fly in the ointment for electronic components. The industry is recovering from COVID-induced shutdowns and travel restrictions are causing problems at borders, creating delays that ripple through the supply chain.

Supply and demand

The bulletproof economics of supply and demand also rule the roost for electronic components, and demand is higher than it has ever been.

We are in a situation today where most electronic components manufacturers are running at 99-100% capacity and can’t keep up with demand.

Demand is outstripping supply for chips, memory and communications components like integrated circuits, discrete circuits, optoelectronics, and sensors creating a bidding war as manufacturers scramble to get what they need.

Growing demand for new technologies

Emerging technologies like artificial intelligence, machine learning, virtual reality, augmented reality, and edge computing are fuelling demand for smarter chips and data center modernization, while technologies like 5G and Wi-Fi 6 are demanding infrastructure rollout, which requires significant investment.

Across the board, technology is booming. Manufacturers are making more products for more people, and they must do so while balancing costs at a time when component prices are rising – no easy feat even for established businesses. 

Pressure relief

Everyone is raising prices in line with their own cost increases, from semiconductor manufacturers to outsourced fabs and suppliers. At 10 to 40%, these increases are putting pressure on supply chains and businesses.

How many price increases will target markets absorb? How can we sustain production without significant margin pressure? These are the challenges facing manufacturers, who are stuck between a rock and a hard place right now.

There are a few solutions:

  • Equivalents: Source equivalent components from different brands/makers/OEMs that meet size, power, specification, and design standards.
  • Use an electronic components distributor: Distributors are the best-connected players in the industry, able to source hard-to-procure and shortage components thanks to relationships with critical decision makers.

Prices will fizzle down, eventually

Although research published by Supplyframe says pricing challenges will remain through early 2023, they won’t last forever. Price rises should fizzle out towards the end of 2021 as manufacturers catch up to orders and reduce disruption.

If you are experiencing an electronic component shortage, we can help. Email us at sales@lantekcorp.com if you have any questions or call us at 973-579-8100 to talk with our team.

 

 

 

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component shortage Electronic Components

Automotive electronics market set to grow

With vehicles getting smarter, more connected and more autonomous, the automotive electronics market looks set to soar.

Future growth in numbers

Back in March, Precedence Research predicted the automotive electronics market would hit around US$ 640.56 billion by 2030.

Then, in July, Global Market Insights released research predicting the automotive electronics market would hit around US$ 380 billion by 2027.

Interestingly, measured across the same period, both research reports (which are independent) predict a similar growth pattern. Global Market Insights predicts a 6% CAGR, while Precedence Research predicts a CAGR of 7.64% over a 3-year longer period.

With two separate reports indicating significant annual growth. The automotive electronics market looks set to boom. But wait, there’s more.

A 9.3% CAGR is expected in the automotive electronics market by 2030, according to research by P&S Intelligence. They predict slightly less growth than Precedence Research to 2030, at US$ 615.3 billion (versus $640.56 billion).

Growth factors

There are approximately 1,400 chips in a typical vehicle today. Which each chip housing thousands of components on a semiconductor wafer, creating integrated circuits that power computing, memory, and a host of other tasks.

Those are just the chips.

Cars have thousands of other electronic components, including passive, active and  interconnecting electronic components. From batteries, sensors and motors, to displays and cameras. Oh, and everything is connected.

All told, a typical car today has more than 50,000 electronic components that enable features like in-car Wi-Fi, self-parking technology, adaptive headlights, semi-autonomous driving technology, keyless entry, and powered tailgates.

However, cars are getter smarter and more advanced. Electronic components today make up around a third the cost of a car, which will increase over time as more sophisticated and greater numbers of components are used.

Smarter cars need more components  

The future of cars involves electrification, autonomous and self-driving technologies, hyperconnectivity, Internet of Things, augmented reality, artificial intelligence, biometrics and a whole host of next-generation technologies.

How will these be enabled? With electronic components.

Let’s take electrification as an example. An electric car handbook will tell you an electric car has a motor, a battery, an on-board charger, and an Electronic Control Unit (ECU) that controls one or more of the electrical systems or subsystems in the vehicle. Together, these let you drive around, charge, and pop to the shops.

In-between these systems, are hundreds of thousands of electronic components that make them work. You see, an Electronic Control Unit is a single component, containing thousands of smaller components, each performing a critical role.

The automotive electronics market is set to soar because cars and other vehicles will need more components with electrification and next-gen technologies. Sometimes, things can be simple to explain, and this is one of those times.

Meeting demand

The electronics industry is facing a global chip and electronic component shortage which is expected to last 2-3 years. As demand for automotive electronics soars, shortages look very likely for certain components like CPUs and memory.

The solution for many companies will be to use an electronics component distributor, to fill gaps in the supply chain and keep things moving.

Electronic component distributors like Lantek can source hard-to-procure components because we have relationships with the best suppliers in the industry. Contact us today with your inquiries at sales@lantekcorp.com or call 1-973-579-8100

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Electronic Components Semiconductor

Why are semiconductors so important to so many industries?

The semiconductor chip has done more to connect the world than any other technology, but why is it so important to so many industries?  

Semiconductors are materials used to make semiconductor wafers. Which potentially millions of components are fabricated, to create an integrated circuit (IC), creating a single chip that can be used for computation or other tasks.

Semiconductors are important to so many industries because they are an essential electronic component. Whether we are talking about the semiconductor material (silicon, silicon carbide) or the chips that perform tasks.  

To understand why semiconductors are so important to so many industries, let’s take a step back and clarify what a semiconductor actually is.

What is a semiconductor?

A semiconductor is a material that partly conducts current, somewhere between that of an insulator and a conductor (hence the name semi-conductor).

A semiconductor chip is an integrated circuit (IC) formed on a wafer of silicon, consisting of the semiconductor material that manages the flow and control of current, and components like transistors and resistors to create the circuit.

When talking about semiconductors in relation to chips, we use the names “chips” or “semis’” because these names are more accurate for describing circuits laid down or grown to do computation or other tasks like memory.

Why are semiconductors so important?

In 1947, the first semiconductor transistor was made. Engineers quickly realized that manufacturing transistors out of silicon allowed them to fit on a microchip, which opened the gates to all the electronics you use today.

Without semiconductor chips, modern electronics would not exist. These inconspicuous, tiny components replaced tubes in electronics in the 1970s, laying the foundation for every electrical device used today, including the screen you’re looking at.

Today, all modern electrical devices use semiconductor chips, from home ovens to smartphones and cars. Billions of semiconductors are manufactured each year, and they are getting smaller and smarter with each generation.

Powering our smart, connected world

As we discussed earlier, semiconductor chips are single electronic components consisting of thousands or millions of electrical components, enabling functions like computation, memory, oscillation, switching, logic, amplification, and so on.

Without this single component with an integrated circuit, there would be no way to efficiently make the circuits we need to create smart, connected devices in their current form. Quite literally, chips are the reason you are reading this.

With an insatiable appetite for semiconductor chips, it’s a good job the material we use to make the wafers – silicon – is naturally abundant.

Today, most chips are built on silicon, which makes up 27.7% of the earth’s crust, or silicon carbide, a compound tweaked for performance.

However, our demand for chips is outstripping supply. There is a global semiconductor shortage underway affecting all industries, with the automotive industry hardest hit due to a perfect storm that has been building for years.

Electronic components distributors like Lantek are helping supply meet demand, while the semiconductor industry battles to make more chips.

If you are having difficulty finding those hard-to-find and obsolete electronic components. Get in touch with our team today by emailing sales@lantekcorp.com or call 1-973-579-8100

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Electronic Components passive components

Passive and Interconnecting Electronic Components market to display lucrative growth

The passive and interconnecting electronic components market is predicted to display lucrative growth across all regions over 2020-2025, with North America the dominant market due to the prominence of players in the country.

These predictions come from The Passive and Interconnecting Electronic Components market report from Market Study Report, which you can request a sample of here. The report delivers a rigorous analysis of the market, examining the main growth drivers and restraints, as well as opportunities for revenue cycles.

The passive and IEC markets are forecasted to experience a CAGR (compound annual growth rate) of 3.1% from 2020-2025, with the US market expected to reach $32.3 billion by 2025, up from $28.6 billion in 2020.

Key players in the industry include:

  • ABB
  • API Technologies
  • AVX Corporation
  • ST Microelectronics
  • 3M Electronics
  • Fujitsu Component
  • American Electronic Components
  • Hamlin
  • Eaton Corp.
  • Datronix Holding Ltd

As the world gets smarter and demand for passive and interconnecting electronic components increases, small players will also take a bigger role. Trade barriers caused by geography will need to be overcome to meet demand, fuelling an explosion in growth across all developed markets, from Europe to Asia Pacific.

What is fuelling growth?

While the report provides in-depth analysis of factors that will fuel growth, we don’t want to tread on its toes, so we’ll provide a simpler analysis.

The reason the passive and interconnecting electronic component markets are going to experience significant growth over the next several years is because of industry tailwinds and technological advancement. Given today’s technological innovation, it’s no wonder that demand for all types of electronic component is soaring.

Disruptive new technologies, rapid advancement in existing technologies and the adoption of smarter, more connected devices, is fuelling unprecedented demand for everything from passive components to chips.

For example, in 2021, manufacturing of passive components could see an 11% increase, but demand is likely to exceed 15%.

Making supply meet demand

There has been a lot of talk about how the next great technological cycle will fuel growth for the semiconductor industry, but it’s important to recognize that chips are nothing but silicon and metal without other components like passives and IECs.

While supply for some components like display drivers is ticking along, there is a global shortage for other components like active, passive and electro-mechanical components, putting manufacturers in a compromised position.

The shortage for some IECs and passive components is expected to last several years, so making supply meet demand will be a challenge in the near future.

To make supply meet demand, suppliers and manufacturers will need to partner with well-connected distributors. Electronic component distributors are the best-connected players in the supply chain, linking sellers with buyers and vice versa.

Sourcing and allocating shortage electronic components is something that we specialize in at Lantek. We help source components that are impossible to find, helping to keep supply chains moving and manufacturing plants going.

With the passive and interconnecting electronic components market set to soar, planning is essential to make supply meet demand and capitalize on growth.

Categories
Electronic Components

Chips shortage limits auto production in Brazil and the rest of the world

“Never seen anything like it,” Tesla’s Elon Musk tweeted last month about the global chips shortage, “Fear of running out is causing every company to overorder – like the toilet paper shortage, but at epic scale.”

If you want a prime example of the chips shortage, look to Brazil.

In 2020, the automotive industry in Brazil was hit hard by chip shortages and the coronavirus pandemic. Approximately 1.61 million passenger cars were made in 2020, a decrease of over 34% compared to the following year. 

2021 got off to a flier… then grounded

2021 got off to a much better start for Brazil, with 1.14 million passenger cars leaving the production line in in the first half of the year, a 57.5% increase compared to the same period last year. However, production has hit a ceiling.

Brazil’s Association of Automotive Vehicle Manufacturers, ANFAVEA, has disclosed that because of chip shortages, Brazil missed its target for automotive production in the first half of 2021, and the numbers cited are startling.

According to ANFAVEA, some 100,000 to 120,000 passenger cars were prevented from entering production by the chips shortage. In June, only 166,947 passenger cars were made, the worst figures of any month in the last 12 months.

Manufacturing limitations created by the chips shortage have been compounded by the coronavirus pandemic. Brazil has seen 19.8m coronavirus cases with a 2.8% mortality rate, sadly resulting in over 500,000 deaths.

The biggest factories are struggling in Brazil

More than 20 plants in Brazil run by the likes of Volkswagen, Mercedes-Benz, General Motors, Nissan, Toyota, Renault, Volvo, Scania and Honda have shut down temporarily in 2021 because of the chips shortage and the pandemic.

At the beginning of June, Volkswagen halted operations at two Brazilian plants amid the chips shortage for 10 days. The company said, “A significant shortage of semiconductors is resulting in several supply bottlenecks.”

Then, in July, Hyundai Motor temporarily halted the operations of its Brazil plant due to the chips shortage. The closure was the first in the Piracicaba plant’s history, raising the alarm over chip shortages in the automotive sector.

What next for the Brazilian automotive sector?

Figures show that in the first half of 2021, the Brazilian automotive sector had a strong rebound on 2020. However, water has been thrown over the fire towards the middle of the year, due to chip shortages across the sector.

Local manufacturers expect to see some relief after August as manufacturing plants catch up, but manufacturers are uncertain about when the supply chain will normalize.

How’s morale among big companies? Sombre, to say the least.  

IBM says the chip shortage could last two years, while Intel Intel’s chief executive, Pat Gelsinger, thinks it could stretch into 2023.

Dell’s CEO echoes these sentiments, “The shortage will probably continue for a few years. Even if chip factories are built all over the world, it takes time.”

So, whichever way we look, and whichever experts we ask, the global chip shortage is showing no signs of abating. For Brazil’s auto manufacturers, making supply meet demand will be the biggest test of the last few decades.

Need Electronic Components?

When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence, or quality issues, contact Lantek for a fast response to your enquiries and a reliable on time delivery. Email Sales@lantekcorp.com or call 1-973-579-8100 today.

 

 

 

Categories
Electronic Components

What Shortage? How Electronic Component Distributors Make Supply Meet Demand

When buyers can’t find electronic components, they turn to distributors like us who can source scarce and obsolete parts.

Our experience has been tested to new extremes over the last several months due to the semiconductor and wider electronic components shortage. This shortage was years in the making but has been amplified by COVID-19.

It says everything about the state of the electronic components supply chain when Samsung, who make their own chips, don’t have enough chips. Shortages have affected brands like Samsung, Apple, Volkswagen and Nintendo not just in terms of supply, but also prices, which have skyrocketed in 12 months.

When the chips are down, prices go up.

Distributors are busier than ever

Lantek Corporation, as well other distributors, have become more essential than ever in supply chains since the COVID-19 pandemic began.

It’s no exaggeration to say distributors like us are keeping many businesses going. We keep production lines going by sourcing scarce parts from around the world – parts that would be impossible to source without excellent connections.

We are seeing desperation from companies that have never experienced supply chain problems. We’re talking about global companies listed publicly.

The situation is so bad for some components that some companies are paying a 100% premium just to secure them. Supply and demand is driving fierce competition and bidding wars are not uncommon.

If these revelations shock you, consider this – the electronics components shortage isn’t expected to abate until late 2021 at least. By then, there should be more order to the chaos, but some industry experts expect it to persist longer.

For example, IBM has said the chip shortage could last 2 years.

A 2 year extension would extend the chip shortage to 2023 at least. This is likely to be the case for other components too, including memory, integrated circuits and display drivers. A huge number of companies will be affected.

Playing a crucial role in the supply chain

Distributors like us are able to source hard-to-procure components because we have rapport with the best suppliers in the industry. In other words, we have immense buying power, and we put this to use for our customers.

Another way we are playing a crucial role in the electronics components supply chain is the reduction of counterfeit components.

Counterfeiters are taking advantage of weakened supply chains, lapse quality control processes and inadequate reporting to flood the market with illegal components. This has affected thousands of buyers and will affect many more.

Our role in this is to deploy anti-counterfeiting technologies including a SENTRY machine, die testing and decapsulation testing to test the components we procure. This ensures the components we supply are genuine parts.

We provide industry-leading chip testing to catch counterfeit parts. We have ISO 9001:2015 certification and ESD qualified staff.

If you need to buy parts and the only way to get them is with a distributor, don’t rush in – make sure your distributor is as equally qualified as us first. If you need help, feel free to call us on 001 973-579-8100 to chat with our experts.

 

 

 

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component shortage Electronic Components

Perfect storm’ creates electronic component shortages

A perfect storm has hit the electronic components market, creating supply chain problems that will be felt for several years.

The perfect storm

Even before the COVID-19 pandemic, most electronic component manufacturers were running at 95-98% capacity.

This high demand for electronic components was fuelled by growth in technologies like automation and the Internet of Things – technologies that are only in their infancy now but will mature in the next decade.

This high manufacturing output was felt across all types of components, especially chips (semiconductors, memory) and integrated circuits. It was even difficult to get a hold of some active and passive components in 2019.

Then, in 2020, the COVID-19 pandemic hit. Car manufacturers and other manufacturers affected by shutdowns paused orders for electronic components. Meanwhile, manufacturers benefitting from lockdowns scaled up.

Now, with the development and roll-out of COVID-19 vaccines, industries that shut down have opened up again. But there’s a problem – demand for electronics has not wavered and there isn’t enough manufacturing capacity to serve everyone.

Quite simply, there isn’t enough bread to go around.

Demand is ramping up

We are now in a situation where electronic components manufacturers are running at 99-100% capacity. Demand has soared for all types of components, from chips and memory to diodes and displays. This is squeezing most supply chains.

There are so many contributors to this squeeze. Emerging technologies like AI, automation, virtual reality, augmented reality and machine learning are fuelling demand for smarter chips and data centre modernization, while technologies like 5G and Wi-Fi 6 are demanding infrastructure rollout, which requires a significant effort.

When it comes to chips, however, cars are the biggest users. Cars can have as many as 22,000 multilayer ceramic capacitors (MLCCs) each. This will increase as cars get smarter (a self-driving taxi sounds great, but it’ll need around 30,000 chips).

Suppliers are slowly adapting

There has been years of under-investment in new foundries and plants. This under-investment has affected manufacturing capacity today.

To their credit, most manufacturers are looking to expand capacity by setting up new foundries or acquiring plants. Trouble is that most plants take years to set up. Some plants that started a build in 2017 are still being built.

Staffing is also an issue. The biggest challenge suppliers face is social distancing and COVID prevention policies, which have reduced staff numbers in many factories.

You can’t automate every process in a factory, so it is a given that having fewer staff will increase lead times. Some manufacturers have been harder hit than others with this, but all will experience staff shortages during the pandemic.

In addition to this, freight has become more challenging during the pandemic. Things are taking longer to move and there are fewer commercial flights. Global shipping rates have skyrocketed during the pandemic because of this. Higher shipping rates have contributed to price increases for most electronic components.

Weathering the storm

We predicted the electronics component shortage in early 2020 following the USA’s national lockdown. We knew supply chains would be squeezed and stretched due to changes in economic output and industry trends.

The best way to weather the storm is to work with us or another reputable electronic components distributor. We focus on delivering outstanding service, with industry leading quality and dependability. Call us at 001 973 579 8100 to chat.

 

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Electronic Components

Active Electronic Components Market Growing Demand

Active electronic component demand is soaring. The market is expected to grow by a compound annual growth rate of 4.8% during 2021-2026, fuelled by new technologies and faster and more globally available internet connectivity.

What’s driving it?

An explosion of new products with AI and IoT support and tailwinds like 5G are fuelling demand for active components.

Semiconductor devices, optoelectronic devices and display technologies are significant applications. Examples include smart home appliances, virtual reality headsets, connected medical devices and electronic ordering systems.

Here’s a non-exhaustive list of active components in high demand:

  • Diodes
  • Transistors
  • Integrated circuits
  • Optoelectronics
  • Sensors
  • Digital and analogue circuits
  • Batteries and power supplies
  • Generators
  • Vacuum tubes
  • CRT / LCD / VFD / TFT / LED displays

The increasing trends of the Internet of Things (IoT), automation, artificial intelligence, machine learning and virtual/augmented reality are expected to fuel demand for active electronic components for years to come.

Challenges lie ahead

This growing demand is not without its challenges. How will manufacturers get a hold of active electronic components if there isn’t enough to go around? Will geopolitical tensions affect supply? How will COVID-19 play a role in the future?

COVID-19

COVID-19 can create supply chain and market disruption and have a financial impact on firms and financial markets. If the virus persists in causing global disruption, this is likely to cause a shortage of active components in the future.

Geopolitical tensions

The US and China’s trade war in 2020 affected chip supplies around the world. Geopolitical tensions remain a risk in the future. Who knows if certain brands will be banned? It’s important that manufacturers stay in the loop to avoid supply chain problems.

Manufacturing bottlenecks

The world is advancing at a rapid rate and electronics components manufacturers are struggling to keep up. While investment in new factories is ongoing, demand may exceed manufacturing capacity, causing a shortage of components.

Price increases

Inflation is making everything more expensive. Add wildly fluctuating exchange rates and increasing demand for active components and you have the perfect recipe for price increases. This could cause a bidding war.

Active components and the future

The future is filled with more technology than you can imagine. Everything will be connected, including your car to your smartphone and your TV speakers to your smart home assistant (e.g. Alexa). Anything electronic can have a chip these days and you can bet innovators will find a way to make everything smart and connected.

With the active electronic components market predicted to increase in value significantly over the next five years, it is essential that companies have a reliable way to source the active components they need.

This is not a matter of beating the competition but a matter of staying operational amid impending shortages. The current chip shortage is a prime example of what can happen if a perfect storm of industry issues occurs.

If you need to source active electronic components, we can help. Email us if you have any questions or call us at 001 973-579-8100 to chat with our team.

 

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component shortage Electronic Components

The Global Chip Shortage Has Created a New Problem: Counterfeits

The global chip shortage is officially wreaking havoc.

The world’s biggest carmakers, including Toyota and Volkswagen, have had to slow down vehicle production, and Samsung – who make their own chips – has had to delay the launch of several smartphones due to be released in 2021.

These are but a few examples of thousands of cases where the global chip shortage is wreaking havoc with manufacturers.

But that’s not all – the global chip shortage is creating a new problem: counterfeit components.

The issue is simple: chip manufacturers can’t make enough chips which has given counterfeiters a golden opportunity to plug the gap.

A counterfeit part is an unauthorized copy, imitation, substitute, or modification of an original component.

Counterfeit components are illegal and should not be used under any circumstances, but counterfeiters don’t care. They defraud you and hope you don’t notice. And if you do, there is virtually no chance of getting your money back. 

With no accountability, counterfeiters are having a field day.

A sophisticated criminal enterprise

The counterfeit electronic components industry is a multi-million-dollar industry. It has become sophisticated and impossible to shut down.

Criminals are taking advantage of weakened supply chains, inadequate quality control processes and inadequate reporting to flood the market with illegal components. They are praying on weaknesses and desperation to profit.

Counterfeit chips can look like the real thing, but worse is they can also perform similarly during basic benchmarks and tests. This allows the most sophisticated components to penetrate manufacturing lines.

The risks of using counterfeit components include:

  • Financial loss
  • Reputational damage
  • Loss of customers
  • Refunds and regulatory fines
  • Bribery from criminals
  • Poor and dangerous product performance

How we can help you avoid counterfeits

We provide industry-leading chip testing to catch counterfeit goods. We have ISO 9001:2015 certification and ESD qualified staff. We have several anti-counterfeiting technologies available including a SENTRY machine, die testing and decapsulation testing.

We specialize in the procurement and delivery of electronic components for a wide variety of industries from the world’s leading manufacturers.

If you work with us as your electronic components distributor, you can avoid the issue of counterfeit chips and components for good. We have standard anti-counterfeiting policies and all the components we supply have a guarantee.

If you are still exploring your options, here’s some general advice:

  • If it is too good to be true, it probably is
  • Make sure any guarantee is worth the paper it is printed on
  • Look for ISO 9001:2015 certification
  • Demand testing prior to all deliveries
  • Only work with suppliers who have an anti-counterfeiting policy
  • Beware of spoof companies that pretend to be someone they are not
  • Consider staff training to identify when something isn’t right with suppliers

If you are concerned about counterfeit components in your supply chain we are happy to provide advice. Call us on 001 973-579-8100 for a chat with our experts. The chip shortage does not have to affect your supply chain with our help.  

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Electronic Components Semiconductor

Semiconductor production capacity expected to hit records highs in 2021

As you probably know, we are in the middle of a global semiconductor shortage. Auto manufacturers are cutting jobs, brands are delaying the release of new products, and people are struggling to buy things like games consoles.

It’s a grim situation predicted to last a few years, but behind the scenes, semiconductor companies are preparing to come out of the chip shortage swinging.

In fact, it’s predicted that semiconductor production capacity will reach a record high in 2021 so long as additional production lines are completed. This is reliant on production lines coming online following investments made at the beginning of 2018.

According to industry forecasts, next year, another 10 production lines for 300mm silicon wafers will be added worldwide. These will contribute millions of semiconductors each year, helping to release some pressure on demand.  

IC Insights also provides the following forecasts for chips: “By 2024, the average annual growth rate of semiconductor production capacity will be 5.9%. Compared with the average annual increase rate (5.1%) of semiconductor production capacity in the past 5 years (2014 ~ 2019), the growth rate slightly increased.”

Record demand for chips

The semiconductor market is experiencing record demand across all sectors. Chip manufacturers are struggling to keep up, but they are investing in new production lines to meet predicted demand several years from now.

The latest report from IC Insights’ McClean Report says that the semiconductor market will shake off the Covid-19 pandemic with 13% growth in 2021.

Semiconductor unit shipments are expected to hit 1,135.3 billion in 2021, fuelled by chips that target connected devices, VR and AR, network and cloud computing systems, contactless payment systems, automotive electronics including autonomous systems and consumer electronics including smartphones.

As technology advances and the world becomes more digital and more connected, chip demand will increase ten-fold over the next few years.

Semiconductor manufacturers are struggling to keep up with demand now but there are signs of life as the IC Insights’ report demonstrates.

The world’s biggest chip companies, including TSMC, UMC, SMIC, Samsung, Micron and SK Hynix are going to play a leading role in how technologies roll out long into the future. There should be no doubt these companies will power our future.

What next for semiconductors?

The prices of semiconductors are expected to increase by 20% in 2021 due to a shortage in production capacity and higher silicon prices.

However, the future may not be silicon at all. Graphene chips are 100 times smaller than silicon chips and thousands of times faster. This technology is in its infancy but it’s showing great promise. We expect big things in the next decade.

We also expect the semiconductor shortage to persist until 2022. Shortages should lift beyond this as production capacity increases from new production lines. Chip makers will need to manage supply and demand better in the future. The current shortage is bad news for everyone. Thankfully, it won’t last forever. Of this we’re certain.

 

 

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Electronic Components Supply Chain

UK Government asks for views on supply chain security

UK’s Department for Digital, Culture, Media and Sport (DCMS) has called for views on security measures across digital supply chains and IT services, including data processing, infrastructure management and supplier assurance.

The call comes as more organizations move their operations online and pivot to digital business models. A few obvious examples are retailers moving online and car manufacturers offering cars on subscription, which may kill showroom sales.

As organizations increasingly move their operations online, it’s a given that digital supply chains and third-party IT service operators will become more vital. The government wants to take a leadership role in helping organizations make the transition.

“We’re seeking views from firms that both procure and provide digital services, as a first step in considering whether we need updated guidance or strengthened rules,” said Digital Infrastructure Minister Matt Warman.

Call for Views

The Call for Views focuses on two parts:

Part 1 seeks input on how organizations across the market manage supply chain cyber risk and how government intervention would help.

Part 2 seeks input on the suitability of a proposed framework for Managed Service Provider security and how it can be appropriately implemented.

You can read more about the Call for Views here.

The information submitted by organizations will be used to develop new policy solutions that support organizations in cyber risk management.

However, responses are not limited to organizations and all those that have an interest in supply chain cyber risk management are being asked to provide their opinions.

Security comes first

The government wants to ensure that organizations can properly review the cyber security risks coming from suppliers and their supply chains.

The National Cyber Security Centre (NCSC) already offers a raft of support to help organizations assess the security risks of their suppliers, however the government wants to go further and is asking for views from organizations on this matter.

They have requested views on existing guidance for supply chain risk cyber management and they are testing a new security framework with some firms. This is a managed service provider framework, which requires Managed Service Providers to meet the current Cyber Assessment Framework so feedback can be collected.  

On the Call for Views, Digital Infrastructure Minister Matt Warman has said: “There is a long history of outsourcing of critical services. We have seen attacks such as ‘CloudHopper’ where organizations were compromised through their managed service provider. It’s essential that organizations take steps to secure their mission critical supply chains – and remember they cannot outsource risk.

“Firms should follow free government advice on offer. They must take steps to protect themselves against vulnerabilities and we need to ensure third-party kit and services are as secure as possible.”

Want to take part?

If you wish to take part in the Call for Views, you can complete the online survey. If you are unable to complete the survey, you can email your response to cyber-review@dcms.gov.uk or send it via post to the following address:

Call for views on supply chain cyber security

Cyber Resilience Team – 4/47

DCMS

100 Parliament Street

London

SW1A 2BQ

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Electronic Components

Chip shortage hitting auto jobs

The global semiconductor shortage is hitting automotive manufacturers where it hurts, which will inevitably lead to job cuts across the supply chain.

We are already starting to see this with Stellantis, the car company formed by the merger of Fiat and Peugeot, saying it will cut over 1,600 jobs at its Illinois Jeep plant.

Elsewhere, the first sign of job cuts will be found in production cuts. Ford Motor Co has outlined a series of plant shutdowns due to the chip shortage, with five facilities in the US and one in Turkey affected. They have also cut output in Europe.

Meanwhile, GM has been forced into production cuts and Nissan recorded its worst annual loss in decades because of the global chip shortage.

Volkswagen AG has also sounded the horn, warning that chip shortages will curb output in the coming months of 2021. VW expects worsening production from the chip shortage and for it to affect all their cars groups, including SEAT and Audi.

Billions in losses

Job cuts appear to be inevitable across the automotive industry as manufacturers count the cost of production constraints caused by the chip shortage.

It is estimated the global auto industry will take an £80 billion hit in 2021. Several manufacturers have come forward with their own estimates. Ford says the chip shortage will cost them up to $2 billion in 2021 alone.  

Unfortunately, it is ordinary workers who will be punished. With fewer cars to make, workers involved in the manufacturing of cars will be cut first. We have already seen this with Stellantis. Other manufacturers will likely follow.

Why the chip shortage?

Modern cars have more than 1,000 chips in them and the smartest, most connected models, such as those with ADAS systems, have over 3,000 chips. So, even a small supply constraint can set back production.

However, this is no small supply constraint.

It appears that no auto maker is immune to the chip shortage brought about by cancelled orders at the peak of the coronavirus pandemic.

When the coronavirus pandemic hit, auto makers cancelled chip orders. Electronics manufacturers filled this gap in demand with soaring sales. Now that auto makers need to ramp up chip orders again, they have nowhere to go because most chip makers are running at 98-100% capacity making chips for other booming sectors.

This has caused a global semiconductor shortage that has affected all industries and all players. Even Samsung, who make their own chips, are struggling. The shortage is predicted to last 1-2 years until new foundries become operational.

Looking ahead

The semiconductor shortage will not last forever, and people need cars. Production will accelerate in the years to come. However, jobs may still be at risk.

Sadly, the chip shortage could accelerate digital transformation in manufacturing facilities, with the displacement of human workers for machines.

This is commonplace, but traditional brands may now seek a permanent solution to job cuts through technology. Automated plants are inevitable.

In any case, the future of the automotive industry is bright so long as you extend your horizon. The chip shortage is likely to last for the next 2 years. If you work in the automotive sector, strap yourself in. There is more drama to come.

 

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component shortage Electronic Components

IBM says chip shortages could last two years

As technology has advanced, semiconductors have found their way into everything that requires computing power from coffee machines to cars. But the manufacturing output for semiconductors has not kept up with this change.

The semiconductor industry has also been hit with an industry rotation in demand that it was never prepared to deal with.

This happened at the start of the coronavirus pandemic when automotive manufacturers scaled back semiconductor orders. Lockdowns meant they weren’t making enough cars, so they scaled-down and battened the hatches.

Meanwhile, the demand for data center, computing, and home device semiconductors soared. Rather than finding themselves down on orders, semiconductor makers were all of a sudden making more semiconductors than ever before.

And then the automotive sector came roaring back.

Now, the semiconductor industry is in a state of disarray. Manufacturers are struggling to make enough chips in a situation we’ve called Chipageddon. This is compounded by the fact that silicon prices are soaring, making chips more expensive.

How long will the chip shortage last? The latest opinions don’t deliver good news – IBM says the chip shortage could last 2 years.

2 years!?

The president of IBM, Jim Whitehurst, has said that the current chip shortage could last another two years. Here’s what he said in an interview with the BBC:

“There’s just a big lag between from when a technology is developed and when [a fabrication plant] goes into construction and when chips come out. So frankly, we are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage.”

What Whitehurst means is it takes a long time to set up a chip fab before it can start producing chips. It takes 12-24 months typically, so you have a situation where even if a lot of fabs are being built, they won’t contribute for years.  

The chip shortage is so severe that it has led IBM to look towards other ways to meet demand. “We’re going to have to look at reusing, extending the life of certain types of computing technologies,” says Whitehurst, “as well as accelerating investment in these [fabricating plants], to be able to as quickly as possible get more capacity online.”

IBM isn’t alone

There is a serious imbalance in the semiconductor industry, and this is a problem many companies are having to contend with.

For example, Ford cancelled shifts at two car plants earlier this year and said profits could be hit by up to $2.5bn due to chip shortages. Meanwhile, Apple announced it would take a $3 billion to $4 billion hit due to the global chip shortage.

However, the most telling story of the semiconductor shortage comes from Samsung.  

Samsung is the world’s largest manufacturer of DRAM and the world’s fourth largest semiconductor manufacturer but are also experiencing shortages, to the point of having to delay the launch of the next-gen Galaxy Note until as late as 2022.

The fact that Samsung is experiencing a chip shortage when it manufactures its own chips tells us everything we need to know – the chip shortage is severe. It isn’t a small shortage at all – it’s an enormous shortage affecting everyone across the supply chain.

Unfortunately, it looks like the global semiconductor shortage will be around for a few years yet, and things could get worse before they get better.

Semiconductor woes

The semiconductor shortage is the result of a catalogue of problems going back several years. Here are some of the highlights:

Intel’s woes

Intel is the world’s leading supplier of CPUs for PCs and data centres and in 2018 they caused a chip shortage with the troubled development of 10nm chips. Intel’s mistakes have led to a shortage in CPUs for computers.

Declining DRAM prices

DRAM is a computer’s main memory. In 2019 and 2020, prices for DRAM declined, causing the biggest players – Micron, Samsung and SK Hynix – to curb their output. This led to supply constraints when the coronavirus pandemic hit.

Super cycle

The global demand for chips has hit an all-time high. Data centres, computers, cloud services, augmented reality, 5G, connected devices and connected vehicles are fuelling demand. This is great for chip sales, but the industry can’t keep up.

Tech war

The U.S. created a semiconductor shortage of its own when they levied sanctions against several Chinese companies, including SMIC and Huawei. This exasperated the chip shortage, placing strain on domestic manufacturers.

Coronavirus pandemic and cancelled orders

During the coronavirus pandemic, demand for semiconductors soared in some industries (e.g. electronics) and dropped in others (e.g. automotive). When demand came back for “down” industries, demand didn’t drop for “up” industries, leading to a shortage.

Fierce competition

We now have a situation where carmakers are battling the electronics industry for chips. There aren’t enough chips to go around and increasing manufacturing capacity is impossible without significant investment in new foundries.

Meeting demand

The electronics super cycle is not going to end anytime soon because there are so many tailwinds, including self-driving cars, VR, AR, AI, 5G and space travel. So, we cannot expect demand to drop and the chip industry to catch up with itself.

To meet demand, we need new foundries which take 12-24 months to set up. Many companies are already building new foundries, or are boosting capacity at existing plants, which is good news for the long run.

In the here and now, manufacturers can meet demand for chips by partnering with an electronics component distributor like us. We specialize in the procurement and delivery of electronic components and parts (including semiconductors) for a wide variety of industries from the world’s leading manufacturers.

The semiconductor shortage has affected the entire manufacturing supply chain but our close links in the industry mean we have better access to chips than most. No promises, but we have an excellent track record across all sectors.  

Get in touch with us to discuss your needs. We’re here to help.

Call: 001 973 579 8100

Email: sales@lantekcorp.com 

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Electronic Components

Who are the biggest players in the semiconductor industry?

Over the next decade, demand for semiconductors is going to go supersonic thanks to secular and cyclical tailwinds.

Semiconductors are the building blocks of the information age; every device that will be ‘connected’ needs a semiconductor. The companies that manufacture semiconductors are the unsung heroes of the future. But who are they?

In this article, we will briefly cover the biggest players in the semiconductor industry.

Foundries

Foundries concentrate on manufacturing and testing physical products for fabless companies. Some companies, like Intel, are both fabless and foundry, meaning they design and make their chips. Foundries often serve as a non-competitive manufacturing partner for fabless companies. The following list contains the biggest foundries:

TSMC

TSMC (Taiwan Semiconductor Manufacturing Company) is the world’s largest semiconductor manufacturer by a significant margin. They are expected to capture 56% of the semiconductor market in 2021 (up from 54% in 2020). 

UMC

UMC (United Microelectronics Corporation) is a Taiwanese company. They are the second largest semiconductor foundry in the world behind TSMC. UMC specialise in mature nodes, such as 40nm nodes and other speciality logic.

SMIC

SMIC (Semiconductor Manufacturing International Corporation) is a Chinese company. They are the third largest semiconductor manufacturer in the world. They specialise in process nodes from 0.35 micron to 14 nanometres.

Samsung

Samsung Electronics is a South Korean company. They are the world’s largest manufacturer of DRAM and the world’s fourth largest semiconductor manufacturer. They are expected to occupy 18% of the semiconductor market in 2021.  

Micron

Micron is an American company. They are the second largest manufacturer of DRAM (dynamic random-access memory) behind Samsung. DRAM is semiconductor memory used in consumer electronics, computing equipment and IoT devices.

SK Hynix

SK Hynix is a South Korean company. They are the world’s third largest manufacturer of DRAM and a leading manufacturer of NAND flash memory. In 2019, they developed HBM2E, the world’s fastest high bandwidth memory.

NXP Semiconductors

NXP Semiconductors is a Dutch-American company. They manufacture ARM-based processors, microprocessors and logic across 8, 16 and 32-bit platforms. Their products are used in automotive, consumer, and industrial markets.

Powerchip

Powerchip Technology Corporation is a Taiwanese company. They manufacture DRAM and memory chips, semiconductors and integrated circuits. They use a 300mm wafer production technology which can produce advanced and mature chips.

ON Semiconductor

ON Semiconductor is an American company. They design and fabricate chips and microprocessors for automotive, aerospace, industrial, cloud and Internet of Things devices. They have over 45 years’ of experience in the foundry business.

Fabless companies

“Fabless” means outsourced fabrication. Fabless companies concentrate on the research and development of chips and semiconductors. They then outsource the manufacturing of the product to a foundry. This relationship is non-competitive, and the foundry is normally a silent partner. The following list contains the biggest fabless companies:

MediaTek

MediaTek is a Taiwanese company. By market share, they are the world’s leading vendor of smartphone chipsets. They are also a leading vendor of chipsets for other consumer electronics including tablets and connected TVs.

Qualcomm

Qualcomm is an American company. They are the world’s biggest fabless company. Their product catalogue includes processors, modems, RF systems, 5G, 4G and legacy connectivity solutions. They are best-known for Snapdragon Series processors.

Broadcom

Broadcom is an American company. Depending on which figures you read, they are either the first or second largest fabless company in the world. Broadcom’s products serve the data centre, networking, software, broadband, wireless, and storage and industrial markets.

NVIDIA

NVIDIA is an American company. They are the market leader for high-end graphics processing units (GPUs). In 2020, NVIDIA GeForce GPUs accounted for 82% of GPU market share. This is significantly more than AMD Radeon graphics cards, which accounted for 18%.

AMD

AMD is an American company. They design high-performance GPUs and processors for computers, where they command the second biggest market share behind Intel. Their GPUs compete against NVIDIA’s but are not considered as powerful.

Himax

Himax is a Taiwanese company. They are a leading vendor of automotive chips and semiconductors for connected devices. Their semiconductors are used in TVs, monitors, laptops, virtual reality headsets, cameras and much more.

Realtek

Realtek is a Taiwanese company. They are a fabless semiconductor company focused on developing IC products (integrated circuits). They are best-known for SoCs (System-on-Chips) network (Ethernet) and wireless (Wi-Fi) interface controllers.

Integrated device manufacturers

Some companies have foundry and fabless arms. These companies often design and fabricate their own products or design and fabricate chips for others. These integrated device manufacturers (IDMs for short) blur the line between foundry and fabless with an in-house production process that utilises little if any outsourcing. IDMs include:

Intel

Intel is an American company. They design and manufacture their own chips which they package into CPUs. Intel’s market share in the CPU market has declined in recent years, but they remain one of the top semiconductor manufacturers.

Analog Devices

Analog Devices is an American company. They have a 150mm wafer fab and a 200mm wafer fab. They have fabless production facilities and have made numerous fabless acquisitions over the years, such as OneTree Microdevices in 2017.

Texas Instruments

Texas Instruments is an American company. They have 14 manufacturing sites including silicon foundries. They specialise in the production and manufacture of wafers, digital signal processors, integrated circuits and embedded processors.

Overall

You may have noticed that the US and Taiwan dominate the semiconductor industry on the foundry and fabless side. Among the biggest semiconductor companies, the largest proportion are based in the United States. However, Taiwan is the foundry king, with the two biggest players based there (TSMC and UMC).

Semiconductors are used in all electronics that require computing power, including smartphones, PCs, and data centres and cars. A surge in demand for chip-based products will fuel the need for more semiconductors in the future. It will be up to the big players on this list to meet that demand and power our future.

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Electronic Components

Wireless-to-DALI Gateway specification from DALI Alliance

The DALI Alliance (DiiA) has published specifications for linking wireless-to-DALI gateways to DALI wired products and Bluetooth mesh and Zigbee ecosystems.

The two new specifications published by the DALI Alliance are Part 341, covering Bluetooth Mesh to DALI Gateways, and Part 342, describing Zigbee to DALI Gateways. You can download the specifications you need for your project here.

Wireless-to-DALI gateways

Wireless-to-DALI gateways allow the incorporation of DALI luminaires and other DALI devices into wireless control networks.

The new specifications have well-defined parameters to enable consistent lighting behaviour, so that high-quality smart lighting control systems can be designed. Part of the specifications cover data and analytics, enabling DALI control gear to log and report energy and diagnostics data to a control interface.  

Many lighting systems already leverage DALI lighting control. DALI permits the digital controlling of each lighting fixture in a given lighting system. It enables a two-way communication protocol so fixtures can communicate. These systems are flexible, scalable and built for the future with Internet of Things (IoT) compatibility.

Why publish specifications?

The new specifications have effectively standardised how to link wireless-to-DALI gateways with connectivity solutions. This provides greater flexibility and creative freedom for lighting designers and OEMs. It also enables a consistent quality in installations.

The DALI Alliance, Bluetooth SIG and Zigbee Alliance have collaborated on this effort and all parties are delighted to have created new standards.

Here’s what each party had to say on the announcement:

The DALI Alliance

“Publishing the specifications for Wireless to DALI Gateways is a major milestone that signals our intention to allow DALI to operate within wireless networks when the need arises,” said Paul Drosihn, general manager of the DALI Alliance. “The move extends choice, convenience and creative possibilities to the user base of DALI wired systems and to those implementing new wired and wireless lighting control systems.”

Bluetooth SIG

“The standardized gateway between DALI lighting products and Bluetooth mesh lighting control networks will further accelerate the adoption of advanced IoT-enabled intelligent lighting systems,” said Mark Powell, Bluetooth SIG chief executive officer. “Providing valuable energy efficiencies and a more comfortable and productive experience for occupants, these sensor-rich lighting systems will also enable more efficient operation of other building systems, including HVAC and security.”

Zigbee Alliance

“The Zigbee to DALI Gateway brings together the market-proven, cost-effective, low-power wireless Zigbee technology, with the internationally standardized and widely used wired DALI lighting protocol, to deliver optimized and expanded wireless lighting solutions to the IoT market. When it comes to lighting-control networks, many of our members are invested across categories and applications, especially in the commercial space,” said Chris LaPré, Technology Lead, Zigbee Alliance. “As they continue to lead the market and innovate in new directions afforded by the IoT, we support broadening lighting possibilities as manufacturers drive standards that matter and deliver lighting solutions that keep the world connected. ”

You can find out more about the new release of specifications for standardised wireless-to-DALI gateways and DALI-over-wireless devices here.

Categories
component shortage Electronic Components

Equivalents keep the supply chain moving in uncertain markets

In uncertain markets, the demand for specific, branded components tends to outstrip supply. We have seen this recently with the semiconductor shortage, where specific chips are hard to come by at a time when they are needed.

Equivalent components, also known as equivalents in the industry, provide an immediate solution. These ‘generic’ parts can be specified when specific parts can’t be sourced and in cases where parts no longer need to be from one brand.

Successive cycles of electronic component shortages (especially in the semiconductor sector) have led to manufacturers specifying equivalents on their order sheets. Outside of sectors that have precise specifications for safety, like aerospace and biotechnology, these equivalents are helping to keep supply chains moving.

Equivalent in quality and specification

One of the common misconceptions about equivalent components is that they are somehow castoffs or second-best components. This is untrue. They are simply equivalent components from a different brand/maker/OEM.

The term ‘equivalent’ is used to describe components that can be used as substitutes for specific components. They meet the size, power, specification and design standards set by design teams. They are ‘like-for-like’ on the spec sheet.

The quality aspect of equivalents is only a concern when the electronic component distributor cannot verify the provenance of the components. At Cyclops, we only source genuine, verifiable components. We would rather expand our supplier base than source a batch of equivalents that we cannot be sure of.

A pragmatic approach to managing supply

Companies that are fixated on using specific components run the risk of running into roadblocks. There is a global shortage for chip passives and discrete semiconductors and this problem is expected to last through 2021.

Specifying equivalents is a pragmatic approach to managing supply chains in uncertain markets for several reasons. For the customer, generic specification reduces supply chain risk. It allows the customer to meet demand requirements without the risk of backorders, supply constraints, or being outbid by other companies.

The biggest benefit is flexibility. Rather than be tied to what is in stock and what you can source from an OEM, you can specify a value and chip size for passives, or a generic diode designation, and let your distributor source equivalents.

If you want to give yourself the best chance of meeting the demand for scarce electronic components, equivalents will need to form part of your supply chain. Otherwise, you run the risk of disruption and higher procurement costs.

How we can help you

Lantek specialises in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers.

We can source equivalent components for you from our global network. All we need is a value and chip size for passives or a generic diode designation for actives. We will work with your spec sheets and source high-quality, equivalent components.

If you are currently experiencing an electronic component shortage, we can help. Email us if you have any questions or call us on 1-973-579-8100 for a chat with our team.

Categories
Demand Electronic Components

Keeping pace with high power terminal block demand

High power terminal block demand is soaring with the buildout of EV charging infrastructure. The reason is simple – high current requires high power terminal blocks, making these components essential for EV charging stations.

The rapid growth in the adoption of electric vehicles is fuelling demand for high power terminal blocks beyond what most people expected.

The UK Government’s decision to ban petrol and diesel cars from 2030 has accelerated the buildout of EV chargers, leading to significant new investment by leading companies like Tesla and BP Chargemaster. There are now more than 35,000 charge points across the UK, a figure that is expected to increase by 10,000 in 2021.

The big barrier to purchase with electric vehicles is a lack of charging infrastructure and slow charge times. Building more charging stations is the simple solution to this problem, but bigger, better high power terminal blocks are also needed for the next generation of rapid chargers that will provide power up to 350 kW.

What is ‘high power’?

Anything above 40 amps is classed as high power. All public electric charging stations significantly exceed this amount. High power terminal blocks are typically available up to 125 amps and higher for custom applications.

We need terminal blocks capable of handling higher currents when the charging speed demand increases for the station. EV chargers are classified in three categories: Level 1, Level 2 and direct current. Whether a charger is AC or DC, the higher the current, the higher the power draw, so the more robust the terminal needs to be.

Terminal block specifications

Terminal blocks serve as a routing tool for wiring. They are simple components, used to connect circuits together and provide an electrical ground for the circuit.

Screw terminal, push button and push-in terminal block styles are available. These accommodate different types of circuit design. The module type can be interlocking or single-piece with a plug or receptacle housing.

Terminal blocks for EV charging stations are optimised for this specific purpose and they are normally rated for at least 150% of the max current.

Meeting the soaring demand for high power terminal blocks

Unlike semiconductors, there is no immediate shortage of high power terminal blocks. They are available in the tens of thousands per order.

There is competition between the EV and renewable energy industry for high power terminal blocks though. Both industries are significant consumers of these components and demand is increasing with new electrical installations.

Other in-demand components for electric vehicle charging infrastructure include battery connectors and high voltage connectors designed to handle the heat of EV charging. These connections need to be small but also thermally efficient.

Do you need help sourcing terminal blocks?

Lantek is a leading supplier of high power terminal blocks and connectors to the electric vehicle and renewable energy markets. We are a global distributor with access to the widest range of electronic components for all applications.

You can find out more about what we do here. Email us if you have any questions or call us on 1-973-579-8100 for a chat with our team.

Categories
component shortage Electronic Components Lead Time

Electronics Counterfeiters Capitalize on Component Shortages

Electronics Counterfeiters Capitalize on Component Shortages

The electronics industry is experiencing a components shortage which is bad news for everyone except counterfeiters who are seeing greater demand than ever.

The total available market for counterfeit electronic components is billions of pounds, so it makes no wonder this illegal activity is seeing rapid growth.

What is a counterfeit part?

A counterfeit part is an unauthorized copy, imitation, substitute, or modification of an original component. Counterfeit components are a misrepresentation of the real thing but can be extremely convincing they are legitimate.

Giveaways that components are counterfeits include:

  • Color variances
  • Misspellings and incorrect labeling
  • Mismatched date codes
  • Duplicate date codes and labels
  • Missing items
  • Poor packaging and quality control
  • Font variances
  • Country of origin problems
  • Signs of “resurfacing”
  • Failure in tests and performance issues
How are counterfeiters capitalising on component shortages?

Electronics counterfeiters are capitalising on component shortages by penetrating weakened supply chains, taking advantage of inadequate quality control processes and taking advantage of inadequate reporting.

Demand is exceeding supply for many electronic components, exasperating the issue. The semiconductor shortage is the current big one.

As lead times get pushed out, buyers are faced with a dilemma: should they stick with trusted suppliers and put up with delays or look for another supplier? The risk is the ‘other supplier’ being a counterfeiter or not having the necessary controls in place to ensure that shipments do not get intercepted and changed.

This dilemma is when counterfeiters strike to take advantage. The wrong decision can have significant financial and economic consequences.

Another area of focus for counterfeiters is the scarcity of parts caused by end-of-life designations. There is significant demand for end-of-life components, but they can be very hard to find. Counterfeiters pray on this weakness with illegitimate copies.

There’s also a grey market for used electronic components that are refurbished or reconditioned and sold as new. The danger with this is using components that are spent and not repaired properly. When you buy “new” the components should be exactly that. Buying used is never a good idea, unless you want used parts.

How can I protect myself from counterfeiters?

First of all, you should read our 8 Step Guide To Buying Electronic Components With Confidence and Avoiding Counterfeits.

Secondly, you should only work with electronic component suppliers who have a compliance program in place. A good benchmark is suppliers who are ERAI (Electronic Resellers Association International) members. We are ERAI members, so we are on the ERAI database and use ERAI supply chain risk mitigation solutions.

Secondly, it’s really important that you have an adequate inspection and testing processes in place to verify the components you receive. If your supplier tests components for you, what testing facilities do they use, and which services are performed?

Summing up

Electronics counterfeiters are capitalizing on component shortages by taking advantage of inadequate quality control and reporting processes and weakened supply chains.

A robust supply chain and trusted parts suppliers are the two keys to protecting your organization. If you are concerned about counterfeit components in your supply chain we’re happy to provide advice. Call us on 01904 415 415 for a chat.

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component shortage Electronic Components Lead Time

Why We’re Facing a Global Semiconductor Shortage

The world is experiencing a semiconductor shortage at a time when demand for semiconductors is at an all-time high. Manufacturers can’t make enough of them and we’re now seeing this affect the availability of products.

You probably remember last year Sony released the PlayStation 5 and Microsoft released the Xbox Series X. AMD released the Big Navi GPU (RX 6000) and Apple released the iPhone 12 range. What all these products have in common is they were all directly affected by the semiconductor shortage. Demand well and truly exceeded supply.

What’s causing the shortage?

A perfect storm has hit the semiconductor market. It isn’t one thing but a combination of different things that’s causing the shortage today.

The COVID-19 pandemic

When the COVID-19 pandemic hit, car and commercial vehicle sales took a hit. Estimates suggest that sales fell by 50% or more within a single month. In response, car manufacturers scaled back orders for semiconductors and other parts.

At the same time, demand for electronics chips soared as more people spent time working from home and on furlough.

Laptops, smartphones, drones, smartwatches, tablets, kitchen appliances – everything has a semiconductor nowadays. Then you have IT, data centres, internet infrastructure and cloud and edge computing. All are powered by semiconductors.

And so, the factories that were at capacity making semiconductors for cars switched to making semiconductors for electronics. This was a blessing in disguise for factories because semiconductors for electronics have a higher margin. However, it has caused a problem for car manufacturers who now need to ramp up production.

The situation now is this – car sales are picking up and car manufacturers are fighting for orders against electronics manufacturers. Factories are at capacity and can’t make enough to go around. This is feeding through to nearly every sector.

Ultimately, this is the result of poor planning from car makers who cut orders too deeply last year at the beginning of the COVID-19 pandemic.

Manufacturing limitations

Even before the COVID-19 pandemic hit, there weren’t enough factories to meet semiconductor demand. There were long lead times in 2019 because semiconductor demand outpaced the ability of factories to make them. This problem has persisted through to 2021 and has been compounded by the COVID-19 pandemic.

With most factories running at 99-100% capacity, there is very little room for boosted output. You would think that the solution is to build more factories, but this would not solve the problem today or even a year from now because semiconductor fabs take at least a year to build with another 6-12 months in setup time.

Semiconductor manufacturers are investing in new factories, expansion and more efficient technologies, but short-term solutions these are not.

The US is attempting to bring semiconductor manufacturing to US soil to remedy this or at least reduce dependency on foreign suppliers.

US and China trade war

Calls for domestic manufacturing are heating up in the US and China, the result of a trade war brought about mostly by supply chain disruptions related to the COVID-19 pandemic.

Reports in May 2020 that the Trump administration was in talks with Intel, TSMC, and Samsung about building US chip factories proved true. In 2021, with a new president and Biden administration, these talks are persisting.

The reason a technology trade war broke out between the US and China is because the US imposed a 25 per cent tariff on $34 billion of Chinese imports in 2018. There has been bad blood ever since with threats and action on both sides.

This eventually affected the semiconductor supply chain because in 2020 the US turned to export restrictions targeting the semiconductor supply chain to safeguard critical infrastructure in the telecommunications sector. This followed a 2019 ban on the Chinese company Huawei for “national security reasons”.

For example, one of the consequences of export restrictions was that American firms were cut off from chips made by China’s Semiconductor Manufacturing International Corporation – the third largest chip maker in the world with 11% market share.

Local production problems

Factory shutdowns due to natural disasters, bad weather and the COVID-19 pandemic have caused semiconductor supply chain issues.

Most of the world’s semiconductors are manufactured in Taiwan. Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, has a 28% market share. The second largest, UMC, also based in Taiwan, has a 13% market share.

Taiwan is experiencing serious water droughts in 2021. Millions of tonnes of water are required to manufacture semiconductors every week. Taiwan Semiconductor Manufacturing is having to bring water in on trucks and UMC are doing the same. This has caused significant drops in manufacturing efficiency.

The US is also experiencing shutdowns. NXP Semiconductors had to shut its plant in Austin, Texas, due to winter weather in February 2021.

Factory shutdowns cause order backlogs and extended lead times. Orders persist and pile in whether a factory is down or not. This squeezes supply chains, causing a shortage.

How long will the semiconductor shortage persist?

We expect the semiconductor shortage to persist through 2021 but ease towards the end of the year as demand for electronics chips decreases as COVID-19 lockdowns end. This will cause a shift in supply from electronics semiconductors to automotive semiconductors which will provide the industry with a much-needed equilibrium.

The world’s largest semiconductor manufacturers – TSMC, UMC, SMIC, Samsung, Intel, SK Hynix – are investing in increased output. Many investments were in the pipeline as early as 2019 and are expected to yield results at the end of 2021.

Right now, there is a serious imbalance in the demand for semiconductors, one that our existing infrastructure is not built to cope with. This imbalance will ease over time. 

How can supply chains continue to meet demand?

If you have been impacted by the semiconductor shortage you can meet demand by partnering with an electronics components distributor like us.

We specialise in the procurement and delivery of semiconductors and parts for a wide variety of industries from the world’s leading manufacturers. You can find out more about what we do here. Email us if you have any questions.

Categories
Electronic Components Environment

Anglia goes solar with new photovoltaic cell range

Anglia Components has announced a new PCB-mounted photovoltaic solar cell line for electronics applications in collaboration with Anysolar, offering a new way for electronics manufacturers to harness light energy.  

The technology

The Anysolar PCB-mounted photovoltaic solar cell range can replace battery and mains power for low-power applications. It can be reflow soldered onto PCBs and parts compatible with traditional hand soldering processes.

The advantages of using Anglia’s photovoltaic cells include:

  • Clean energy for sensors
  • Low cost
  • Long lifespan
  • No cell degradation
  • No emissions from energy production
  • Replaces batteries and mains
  • Discreet design
  • Powered by indoor and outdoor light energy

The technology is based on monocrystalline silicon free from impurities, so the cells do not degrade like traditional solar cells do. This enables a longer lifespan and peak performance, to reduce recycling rates and keep electronics in service.

The partnership

Anglia has invested in a profile of all the most popular cell sizes and formats of Anysolar’s Gen 3 solar cells. The cells offer a viable alternative power source to battery and mains power for simple sensors. The cell range offers power from 5.5 mA to 1.02 A so is suited to a variety of low-power sensor applications.

Commenting on the partnership, David Pearson, Technical Director at Anglia said, “Anglia is delighted to partner with Anysolar for this new product range which complements many of our established lines, such as low power MCU’s and sensors.”

“Anysolar provides a viable alternative power source for many of our customers applications such as remote IoT sensor nodes.”

KY Choi, President of Anysolar, added, “We are delighted to partner with a distributor that is so well-respected in the UK and Ireland industry. We really value our relationships with our customers and look for partners that share that value. Our solar modules offer Anglia customers an environmentally friendly new power source for their designs.”

How it works

A photovoltaic (PV) cell, also known as a solar cell, generates electricity when exposed to light particles (photons). The Anysolar PCB-mounted photovoltaic solar cell line optimises this process with a large surface area and monocrystalline silicon.

The photovoltaic effect is a physical and chemical phenomenon. When applied to electronics, it can be used to power low-power sensors. This reduces energy draw on a device’s core power source to optimise performance and efficiency.

For devices to become autonomous, PCB-mounted photovoltaic solar cells will also be necessary for energy. IoT devices are a good example. These devices require a self-sufficient power source to run separately from the grid.

In the future, it’s expected that IoT devices will be able to run without wires or batteries and light energy provides the best possible solution.

Anglia’s PCB-mounted photovoltaic solar cell line is capable of powering a wide range of sensors in IoT devices, including robots, drones and consumer electronics. Remote IoT sensor nodes (nodes that collect data and information related to objects passing by, such as in autonomous cars) are a good example of components prime for PV cells.

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Electronic Components

NXP Announces i.MX 9 and i.MX 8 processor line for Intelligent Multi-sensor Applications

NXP Semiconductors has announced a new line of edge processors that deliver a giant leap in performance and security at the edge.

As edge computing rapidly evolves around us and demand for edge computing soars, performance demands are increasing at an exponential rate. This requires a new approach to security, power consumption and performance. Existing edge processors offer a solution now but are not ready for the next generation of real-time data.

Technologies like machine learning, artificial intelligence, robotics, autonomous driving and next-gen wireless infrastructure all depend on the edge. NXP Semiconductors is meeting the challenge with new i.MX 9 and i.MX 8 processor lines.

i.MX 8ULP and i.MX 8ULP-CS

The ultra-low power i.MX 8ULP and i.MX 8ULP-CS (cloud secured) Microsoft Azure Sphere-certified processors have the EdgeLock secure enclave, a pre-configured security subsystem that simplifies complex security technologies and helps designers avoid costly errors. It automates the following security functions:

  • Root of trust
  • Run-time attestation
  • Trust provisioning
  • Secure boot
  • Key management
  • Cryptographic services

The i.MX 8ULP-CS is Microsoft Azure Sphere-certified with Microsoft Pluton enabled on EdgeLock for highly secure hardware. With Azure Sphere, it has chip-to-cloud security built in, enabling use in a wide range of applications.

Both i.MX processors utilise Energy Flex architecture, which delivers as much as 75% improved energy efficiency compared to previous generations.

They have heterogeneous domain processing and 28nm FD-SOI process technology, making them among the most advanced edge chips in the world. The processors have one or two 1GHz Arm Cortex-A35 processors, a 216MHz Cortex-M33 real-time processor and a 200MHz Fusion DSP for low-power voice and sensor hub processing.

Every Azure Sphere-certified i.MX 8ULP-CS device also gets ongoing OS and security improvements for over ten years.

i.MX 9

The i.MX 9 series is NXP Semiconductors’ range-topping high-performance edge processor for intelligent multi-sensor applications.

The i.MX 9 debuts a new generation of processors that have an independent MCU-like real-time domain and dedicated multi-sensory data processing engines for graphics, image, display, audio and voice. The i.MX 9 series also features EdgeLock secure enclave, Energy Flex architecture and hardware neural processing.

The i.MX 9 is for the next generation of edge computing applications including machine learning and artificial intelligence. It’s the first NXP line to use the Arm Ethos U-65 microNPU which enables low-power machine learning.

Importantly, Azure Sphere chip-to-cloud security is enabled within the i.MX 9 line, providing a clear upgrade path from the i.MX 8 series.

EdgeLock secure enclave is the big ticket item of the new processor lines, combining complex security technologies into a single pre-configured platform. With device-wide security intelligence, it provides a simplified path to certification, enabling non-stop trusted management services and applications.

So what?

With the release of these new processors, organisations of any size can now pursue IoT development and real-time technologies with the confidence that NXP and Microsoft have laid out a foundation of security via Microsoft Azure. The low-power requirements and chip-to-cloud security deliver innovation in the right areas.

You can find out more about the processors here.

Categories
component shortage Electronic Components passive components

Is There a Passive Component Shortage?

Passive components include resistors, inductors, capacitors and transformers. They are among the most abundant electronic components in the world, but demand could start to outstrip supply this year in some industries.

To help you grasp the exponential growth of the passive component market, the market was valued at USD 30.98 billion in 2020 and is estimated to reach 39.59 billion by 2026 (Mordor Intelligence). That research cites the automotive industry as the key industry driver and Asia-Pacific as the biggest growth market.

Fact is that the world is getting more technologically advanced. Demand for passive components is only going to increase. You could draw a line now and skip five years from now. The line would shoot up. We’d bet money on it.

A short history of passive components

In 2017, a major surge in demand for standard passive components coupled with raw material shortages led to strained capacity. Resistors and transistors were badly needed, and suppliers were quoting 20-30 weeks.

In 2019, demand balanced out, and for the first few months of 2020 demand and supply were perfectly balanced. Then the COVID pandemic hit.

COVID-19 caused supply chain problems as component manufacturers scaled down operations. Meanwhile, as industries absorbed the effects of COVID-19, demand increased, and this put the industry in a sticky situation.   

Today, demand for passive components has never been higher. The predicted softening of the market some people made in 2020 has not happened. 2021 is set up to be a boom year for passive components. This could cause shortages.

Why is demand so high today?

The reason for this high demand is investment in new technology. Whether it’s electric cars and charging infrastructure, 5G infrastructure, wireless backhaul, IoT or UAVs, demand for certain components is increasing and factories are struggling to keep up.

The good news is that with increased demand comes new investment in factories and manufacturing output. The risk is that the demand for passive components outstrips supply by such an amount that innovation stagnates.  

We don’t think this will happen. However, this may force manufacturers to turn to outdated, legacy components. They can get away with this during prototyping. However, consumer-facing products will need the newest components. This will require a good supply of passive components in 2021 and beyond.

To meet this challenge, inventory management is key. However, sourcing components among fierce competition is a difficult task. You can be outbid and outmanoeuvred when sourcing components. This makes who you know key.

How to deal with the passive component shortage

If 2021 does bring about a passive component shortage, it’s a good idea to have an electronics component supplier like us.

With large stock holdings, global distributor reach, and a sophisticated electronic component search database, Lantek Corporation can find and deliver day-to-day, shortage, hard-to-find components, and obsolete electronic components.

You can buy passive electronic components with confidence from us. Get in touch if you would like a chat about how we can help you. Our team specialises in sourcing electronic components and we work with all manner of customers.

Categories
Demand Electronic Components Lead Time

MLCC supply is beginning to tighten?

Multilayer ceramic capacitors (MLCCs) are used in many electronics from smartphone screens to laser guidance systems. There was a prolonged lull in demand for MLCCs stretching from 2019 through to 2020, however supply is now tightening and lead times for new components are extending.

This has caused some concern with those who use MLCCs to manufacture products. Will supply continue to tighten? When will it let up? These are good questions. The answer lies in understanding why supply is tightening.

Demand for MLCCs is tightening for several reasons:

  • Demand from the automotive sector is increasing
  • Demand from the communications and transport sectors is increasing
  • Global inventories are depleting
  • Supply chain challenges due to the coronavirus pandemic
  • Manufacturing bottlenecks due to facilities running at maximum capacity
Increased demand

The main reason for supply tightening is an increased demand from the communications and transport sectors. These sectors consume over half of the world’s MLCC supply and the rollout of 5G is accelerating demand.

The global automotive market is also a big consumer of MLCCs. MLCCs are being used extensively in modern cars. Applications include in battery management, chargers, heater controllers and energy converters. Electric cars use MLCCs because they are reliable and can be surface mounted directly to boards.

Inventory depletion

Inventory management has been a difficult task what with 2020 throwing COVID-19 into the works. This hit the MLCC supply chain like a train. Demand dropped off. This led to suppliers correcting inventory levels and sometimes overcorrecting. When demand increased towards the back end of 2020, supply chains got exposed.

It is difficult to correct inventory when not enough MLCCs are being made. For every 10 that are made 8 get put into use immediately. This leaves little fat left.

Increasing lead times

All of this means increased lead times for MLCCs. Many electronic components suppliers and distributors have them on back order. Some types of MLCC have lead times extending over several months (a long time in a supply chain).

For example, large case (≥ 0603) low-CV commercial grade MLCC lead times are around 22 weeks. This is a very long time. The only units that are in good supply are small case size (≤ 0402) low-CV commercial grade MLCCs which are available now.

How can you meet demand?

As 2021 gets underway, we predict that MLCC supply will tighten. Inventories will get stretched and manufacturers will struggle to get a hold of the components they need. Now that you know this, you can prepare.

The best way to assure a healthy MLCC supply is to work with a global distribution partner like us. When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence, or quality issues, Lantek is here to help. We will work with you to source the MLCCs you need. View our home page to use our component search tool and enquire with us today https://www.lantekcorp.com/

We work with all industry sectors, including the communications, transport and automotive sectors, to source electronic components. We specialise in the procurement and delivery of electronic components and parts with on time delivery.

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Lead Time Forecast

2021 Top Manufacturers Lead Time Forecast

Click the image below to download our full Lead Time PDF

 
Categories
Electronic Components Semiconductor Transistors

Chipageddon is upon us

Semiconductors go unseen yet they are at the heart of all our electronics. When supplies run short manufacturing lines slow down and the availability of products is affected. Last year had several examples, some of which may have affected you.

AMD’s Radeon RX 6800 XT GPU was released in December but got nowhere close to meeting demand. Sony’s PS5 and Microsoft’s Xbox Series X sold out immediately and are rarer than hen’s teeth today. Even Apple admitted that the chip shortage affected sales of the iPhone 12 because they had to stagger product launches.

Then, near Christmas, the word “Chipageddon” was used by an automotive industry insider to describe the chip shortage affecting the automotive industry.

Chipageddon

It’s easy to overreact abo