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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

Categories
Covid-19 Electronic Components Supply Chain

Electronic component supply chain efficiency. Will we see another increase in supply and demand due to COVID-19 this year?

In 2020, the electronics components industry saw both increases and decreases in supply and demand depending on where you look.

For example, demand for semiconductors that enable servers, connectivity and cloud usage skyrocketed due to stay at home workforces. Meanwhile, demand for semiconductors used in the automotive industry declined as car sales fell.

In other words, the supply and demand for electronic components was different across various sectors. Now that 2020 is behind us, 2021 is looking to follow much the same path as we continue to contend with COVID-19.

However, there will be one big difference – most of the sectors that had reduced demand for components in 2020 will ramp up their purchase orders in 2021. This is the result of economies opening up and companies getting back to operations.

Supply and demand in 2021

We believe the electronic component industry will witness a significant increase in supply and demand in 2021. There are a few reasons for this. The first is that most industries hampered by the COVID-19 pandemic will open up. Car manufacturing is the big one. This will fuel a surge in demand for semiconductors and sensors.

2021 will also play host to cyclical sectors and several tailwinds. 5G, Wi-Fi 6, AI, robotics, cloud, communications, edge computing and AR / VR are the big ones. These technologies will fuel demand for new electronic components.

Supply constraints will persist

Factories will have to ramp up production to meet demand. 2019 was a bumper year for electronics and a lot of infrastructure was built to meet demand. 2020 stuck a fork in the road, placing higher demand on certain components. In 2021, demand will return to a form of previous normality, increasing supply constraints.

We expect supply constraints of components to grow in 2021. Manufacturers will struggle to get a hold of the parts they need.

This will increase the need for partnerships with electronic component distributors like us who are ingrained into the fabric of the industry.

Things will get better over time

With the global rollout of the coronavirus vaccine in place and manufacturing sectors protected from Government shutdowns in most countries, 2021 should be a year where we see supply constraints reduce over time.

Supply and demand will get back to 80% normality toward the end of 2021. 2022 should be much better. This assumes we get to grips with this horrible virus.

In the meantime, tailwinds will continue to fuel demand for electronic components in sectors like AI and edge computing. COVID-19 has only accelerated digital transformation in most sectors. This is a powerful tailwind.

Ultimately, the demand for passive and active components will increase in 2021. You can make sure you have access to the components you need by partnering with us. We specialise in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers.