Category: Electronic Components

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Electronic Components

Who are the biggest players in the semiconductor industry?

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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component shortage Electronic Components

Equivalents keep the supply chain moving in uncertain markets

Equivalents

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. Contact us if you have any questions or call us on 1-973-579-8100 for a chat with our team.

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Demand Electronic Components

Keeping pace with high power terminal block demand

EV Charging

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.

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component shortage Electronic Components Lead Time

Electronics Counterfeiters Capitalize on Component Shortages

Electronics Counterfeiters Capitalise 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

semiconductor

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.
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Electronic Components Environment

Anglia goes solar with new photovoltaic cell range

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 Announces i.MX 9 and i.MX 8 processor line for Intelligent Multi-sensor Applications

NXP announces i.MX8 and 9 processor line for 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.

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component shortage Electronic Components passive components

Is There a Passive Component Shortage?

Is There a Passive Component Shortage?

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.

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Demand Electronic Components Lead Time

MLCC supply is beginning to tighten?

MLCC supply is beginning to tighten?

Memory suppliers to benefit from strong demand and supplier shortages

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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Electronic Components Semiconductor Transistors

Chipageddon is upon us

Electronic Component

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 about things, but today’s chip shortage is worth getting in a sweat about. Supply and demand is faltering, and manufacturers are genuinely struggling to get the chips they need to make products.

Supply and demand is a basic economics model linking the relationship between the quantity of a commodity available and the quantity people want to buy to price determination. When supply exceeds demand, prices increase. When the opposite happens, prices decrease. It’s easy enough to understand.  

If you’re still with us, the chip shortage has had two main impacts:

  • Fewer chips are available
  • Prices for chips are increasing

This is a double whammy. It means manufacturers are making fewer products and paying more to make them. These costs DO get passed to you, the consumer. It’s the reason why you see random 10% increases in smartphone prices.

You also have the issue of foundries running at max capacity coupled to the low number of foundries that manufacture the newest wafers.

Industries worst hit

By far the worst-hit industry by a chip shortage is the automotive industry. The world’s largest carmakers are facing a critical shortage of semiconductors at a time when demand is increasing, and cars are getting smarter.

Today’s cars have as many as 50 semiconductors that run a variety of systems. In a few years, this number is expected to increase to over 100. 60 million cars are produced each year worldwide. It means the industry needs 3,000,000,000 semiconductors, an enormous number whichever way you look at it.

Another industry hit hard by a chip shortage is consumer electronics. Smartphone manufacturers like Apple and Samsung are struggling to meet demand because there are not enough semiconductors to go around. Sony and Microsoft can’t manufacture as many game consoles as they need to because of lack of supply.

What’s the solution?

Chipmakers need to expand capacity and build more factories. Manufacturers need to consider alternatives to primary component suppliers. The issue is that chip fabrication plants take two years to set up and a low-quality chip can stop an expensive product from shipping. This is as much a quality demand issue as a supply one.

One way you can make sure you have the chips you need is to partner with an electronic component distributor like us. We specialise in the procurement and delivery of electronic components and parts for a wide variety of industries.

Call: +1 973-579-8100

Email:sales@Lantekcorp.com