Tag: manufacturing

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Electronic Components

Chips Act – Latest updates

CHIPS Act Update: New Developments and Their Potential Impact

The CHIPS and Science Act of 2022, a significant investment in US semiconductor manufacturing, continues to evolve.

During a Center for Strategic & International Studies event in February, Secretary of Commerce Gina Raimondo gave several updates on the CHIPS Act. Here’s a quick breakdown:

Funding Expectations: While the CHIPS Act allocated $52.7 billion for semiconductor manufacturing incentives, Secretary Raimondo stated in February that companies might receive less than initially requested. This emphasis on “doing more for less” aims to support a wider range of projects within the allocated budget.

Ambitious Goals: The Biden administration’s bold target was also revealed in the February update: the US aim to produce 20% of the world’s most advanced chips by 2030.

Focus on Fabs: Secretary Raimondo emphasized establishing at least two new large-scale clusters for “leading-edge logic chips” by 2030. These fabs are vital for producing the most advanced semiconductors used in various electronic devices.

The Impact: The increased domestic production of chips is expected to:

  • Reduce supply chain disruptions: This could lead to more stable product availability and potentially shorter lead times for sourcing electronic components.
  • Price fluctuations: While the long-term impact on pricing is uncertain, increased domestic production might eventually stabilize chip prices, currently subject to global market fluctuations.
  • Emerging opportunities: The CHIPS Act could foster innovation and development within the US semiconductor industry, potentially leading to the emergence of new domestic chip manufacturers and suppliers.


AI Chip Development and the CHIPS Act

The US hopes to increase its lead in the development of AI chips, and the Act’s provisions include funding for research and development efforts. This could lead to the creation of more efficient and powerful AI chips, ultimately benefiting various industries like healthcare, automotive, and consumer electronics that rely heavily on AI technology.

While the specific details of AI chip development within the CHIPS Act are still unfolding, it’s an area worth monitoring as it holds significant potential for future innovation and economic growth.

Your Partner in an Evolving Electronic Component Industry

As the landscape of the electronic component industry continues to evolve, Lantek stands at the forefront as a trusted and reliable partner, ready to meet all your needs.

We understand the challenges you may face when supply chain disruptions occur, or when your current suppliers cannot meet your specific needs. That is why we are here to help. Our aim is to go beyond being a mere distributor; we aspire to be your long-term partner, dedicated to assisting you with anything you need, whenever you need it.

Lantek is uniquely positioned to not only assist with sourcing hard-to-find electronic components but also specializes in cross-referencing for obsolete parts, securing better pricing, or identifying alternative sources. We offer comprehensive solutions including scheduled orders, ensuring you have the components you need when you need them, and any other support services tailored to your specific requirements.

Contact us today and let us help you navigate the complexities of the electronic component market.

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Electronic Components

New CHIPS Act guardrails proposed

New CHIPS Act guardrails proposed

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

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

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

Funding limitations

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

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

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

The SIA’s response

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

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

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

 

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

Stay on top of the latest news

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

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Electronic Components

Robots in automotive manufacturing

Robots used in automotive manufacturing

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

Welding

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

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

Painting, coating and sealing

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

Internal logistics

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

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

Assembly

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

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

They are not alone

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

Supplied for you

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

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

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Electronic Components

CHIPS Act Statements of Interest

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CHIPS Act statement of interest

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

NOFO

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

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

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

Statements so far

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

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

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

Supporting the industry workforce

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

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

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

A class act

 

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

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Electronic Components

We’ve moved!

Lantek team
Lantek team in their new office

We've moved!

Welcome to the new Lantek HQ

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

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

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

Lantek new facilities building work in progress
The warehouse while construction was underway
Lantek new facilities ribbon cutting
The official ribbon cutting
Lantek new warehouse
Lantek new warehouse space
Lantek team
Lantek team in their new office
Categories
Electronic Components

Semiconductor manufacture in Vietnam

Semiconductor manufacture in Vietnam

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

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

Vietnam’s industry place – then and now

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

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

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

Investment and talent

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

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

What the future may hold

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

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

Guaranteed

 

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

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Electronic Components Environment

Increase in lithium battery recycling

Increase in lithium battery recycling

The Department of Energy (DOE) is making further investments in lithium battery recycling.

In late February the DOE loaned battery recycling company Li-Cycle $375 million to build a plant near Rochester, New York.

This followed several other recycling companies’ announcements about lithium battery recycling facilities, including Ecobat and Redwood Materials.

The latest facility will be Li-Cycle’s fifth in North America.

Significant investment

Many facility announcements have come as production and popularity of EVs grows in the US. Not only in recycling, but also lithium battery production. Earlier this year the DOE announced a $700 million loan for a processing facility at the Rhyolite Ridge lithium deposit in Nevada.

The company in charge of the facility, Ioneer, states there will be enough lithium produced from the site to build 400,000 EVs each year.

The goals

The US is aiming for 500,000 EV chargers and 50% of all new light-duty vehicle sales being electric by 2030. They are further hoping to be a net-zero emissions economy by 2050.

Sales of EVs in the US were 630,000 in 2021, according to the International Energy Agency. This would need more than 7,560 tonnes of lithium. To reach the goals stated by the Biden Administration, 90,000 tonnes of lithium would need to be produced. This is 1700% more than the lithium currently mined in the US.

Slow and steady

A lithium mine takes between four and 20 years to begin commercial production. Although there are several projects underway in the country, there’s no telling when these might become steady sources of lithium.

Lithium mining is a concern due to the water consumption and toxic chemicals that can leak into the environment. There are also lithium shortages predicted as soon as 2025. Recycling would make the production of lithium batteries more sustainable and potentially mitigate future shortages.

The cost of recycling these batteries can be high. There are additional risks with lithium batteries, demonstrated by the 245 fires across 4 waste facilities caused in the past. The process is pretty time-consuming too. Consequentially, the price of running safe recycling facilities is quite high.

There is hope, though, that it will be worth it in the future. 

Guaranteed

Lantek is a distributor with decades of experience in the electronic components industry. Whether you’re looking for new shortage components or obsolete ones, trust Lantek to provide what you need. Call us today on 1-973-579-8100 or send us an email at sales@lantekcorp.com.

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Electronic Components Supply Chain

Domestic manufacturing increases consumer cost

Domestic manufacturing increases consumer cost

Since the introduction of the Chips Act increased costs were a cause for concern. Many manufacturers and suppliers have expressed a worry that the various cost increases involved in reshoring production would affect business. The major impact of this would be a raised cost of consumer electronic devices at the end of the road.

The upside

With the Act in place, and export restrictions on China being introduced, the chip industry faces an interesting predicament. On one hand the Act will increase the number of jobs. It could also give the US a more stable position in the global market. Not only that, but it will encourage foreign investment in the US economy and bring consumers to domestic producers.

All in all it is expected to improve the US chip industry hugely, and the profits and products of it will mean America is a real competitor in the market.

The downside

Unfortunately, though, there are a few downsides as well. The cost of most things, including building new fabs and training new staff, is more expensive in the USA. There is currently much less semiconductor infrastructure in place here.

Compared to countries like Taiwan and China, which are already set up for mass production, the US will have to invest a great deal of time and money. Additionally, the labor and equipment is cheaper in Asian countries. Some experts in the industry have predicted the cost of making a chip could increase by 40%

According to one research firm, the cost of a fab in the US can be 80% more than in Taiwan. This isn’t exactly attractive for investors.

The impact on consumers

There has been a massive range of estimates on how much the end-user will be affected by reshoring. One of the most often-discussed products is the smartphone. Providers like Apple and Samsung have had to reorganise thanks to the Act, and change their future plans.

In addition to the chips needed for the phone itself, the cameras also require separate chips and components. The cost of a new iPhone, for example, could increase by $100. Other experts have estimated eye-watering estimates of a $30,000 increase, but this is less likely.

Many companies are expected to try and mitigate the cost passed onto customers. It’s worth noting it won’t be possible, or economical, to do this entirely. There are incentives included in the Chips Act to offset these costs too, but those will only go so far.

A steadfast ally

While the Chips Act might change the chip landscape, Lantek’s stellar service will stay exactly how you like it. With Lantek being a global supplier, we will be able to see which avenue will be more cost effective for your production and guide you in whatever component needs you have. Call us today on 1-973-579-8100, or email us at sales@lantekcorp.com. 

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Electronic Components Supply Chain Technology

New US India semiconductor partnership

New US India semiconductor partnership

The US recently formed a partnership with India with an aim to cooperate in several industries, including semiconductor production. This is
hoped to be a very fruitful partnership, especially since the increase in restrictions between China and the US.

Recent changes

More companies have been investing in India in recent years, including Vedanta-Foxconn, PSMC and Micron Technology. Partly thanks to new government incentive schemes, companies are trying to move manufacturing into the country. More are expected to follow as India increases its funding for semiconductor manufacturing.

The Indian Government and related parties have announced several incentives for incoming companies. One of the largest was that there would be a 50% waiver on the cost of establishing a fab.  

The US and Indian Semiconductor Associations (SIA and IESA respectively) have also formed a taskforce to strengthen collaboration. The taskforce plans to assess the country’s readiness to sustain a semiconductor market and make recommendations to increase its presence in the
supply chain.

But it hasn’t been easy. Many incoming companies have mentioned difficulties with a lack of infrastructure, difficult regulations, and other struggles.

The competition

India could also potentially help in the sourcing of minerals for semiconductor production. Currently much of the world’s supply (72%)
comes from China, which could prove troublesome soon enough. 

However, India is apparently abundant in 49 critical and non-fuel minerals that are used in the industry according to a report by the Council on Energy, Environment and Water (CEEW) and the Ministry of Science and Technology.

Work away

 

Another potential benefit to the States is the new ‘friend-shoring’ location it has unlocked. While the Chips Act attempts to move much of the
process to domestic, this won’t be entirely achievable.

The high cost of labor and the lack of highly-skilled employees within the field will prove challenging. In a collaboration with India, however, it would provide a manufacturing location with manageable labor costs. It could also pave the way for highly-skilled professionals from India
to work in the US.

There are hopes that this collaboration is the next big milestone for the countries since the 2016 nuclear power agreement.

A different kind of partnership

We have a steadfast relationship with all of our customers, thanks to the trust and reliability we are known for. Lantek Corporation can fulfil
all your electronic part needs, all you need to do is contact us. We’re available at sales@lantekcorp.com or call us on 1-973-579-8100.

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Electronic Components

What is fabless production?

What is fabless production?

What is fabless production?

A fab is short for ‘fabrication’, which is a facility that produces electronic components. When it comes to fabless production, it refers to when companies outsource their manufacturing. The development of fabless production is a pretty recent development, but one that has flourished since its conception.

How did it come about?

Fabless production didn’t exist until the 80s, when surplus stock led to IDMs offering outsourced services to smaller firms. In the same decade the first dedicated semiconductor foundry, TSMC, was founded. It is still one of the biggest foundries in operation to this day.

In the following years many smaller companies could enter into the market as they outsourced manufacturing. More manufacturers, each with different specialities, also came to the fore.

Advantages

One of the original reasons it became so popular was due to the cost reduction it provided businesses. With the actual semiconductors being manufactured elsewhere, companies saved money on labour and space.

With production outsourced, companies also had the ability to focus more on research and development. No doubt this gave way to many advancements in semiconductor technology that wouldn’t have been possible otherwise.

Having a choice of which manufacturers to work with is beneficial too. Depending on your requirements you can choose someone who best suit your needs.

Disadvantages

When you outsource production, you are putting part of your business under someone else’s control, which can be risky. There could be a higher chance of defects if manufacture isn’t being directly overseen.

It also means that, in terms of quantity of product and price of production, you don’t have total control. If a manufacturer decides to change the quantity they produce or the price, customers are limited to their options. They either have to accept the changes, or search for an alternative which, in a fast-paced market, would be risky.

Conclusion/Disclaimer

The fabless business model, as it is known, will probably continue long into the future. TSMC’s continued profit, among other companies, is a key indicator of its success. And with big names like Apple, Qualcomm and Nvidia working fabless, it would be safe to say it’s popular.

That’s not to say that an integrated business model, with every stage of production occurring in-house, is a bad choice either. There are many just as successful IDMs like Samsung and Texas Instruments.

For a ‘fab-ulous’ stock of both foundry and IDM components, check out Lantek. We specialise in obsolete, day to day and hard to find electronic components. Send us your enquiry at sales@lantekcorp.com, or use the rapid enquiry form on our website.

This blog post is not an endorsement of any particular business model, and is purely for informational purposes.