Tag: semiconductor

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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

Happy Independence Day from Lantek

Happy Independence Day from Lantek

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

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

 

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

 

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

 

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

 

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

Determination 

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

Faith 

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

Loyalty 

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

Trust 

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

 

 

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

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Electronic Components

Global semiconductor sales increase in April

Global semiconductor sales increase in April

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

The global semiconductor forecast

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

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

Legacy chip demand

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

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

Electronic component supply and demand

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

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

Continuing demand

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

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Electronic Components

CHIPS Act Statements of Interest

Credit: sharefaith via Pexels

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. 

Categories
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

Chips Act prompts investment in the industry

Chips Act

Chips Act prompts investment in the industry

Since the introduction of the CHIPS Act in early 2020, the US has seen an increase in private investment.

Companies in the semiconductor industry have announced a large quantity of projects to increase the manufacturing capacity across the states. Some of these projects were even underway before the Act was put into law, relying on the eventual introduction of the Act and the accompanying funding.

The varied projects include ones to build, expand or upgrade fabs specialising in different areas. There are also plans for new semiconductor equipment facilities and factories to produce materials for semiconductors.

Thanks to this early action, some projects could be finished as early as 2024. Others, announced after the implementation of the CHIPS Act, will begin construction this year.

What happens next

There are plans for at least 23 new fabs, and 9 expansions to existing facilities. This, in turn, has encouraged investment in equipment and material facilities. Altogether, both fabs and all the surrounding investment, is estimated to come to almost $200 billion.

Alongside the vast amount of investment to be spent on the industry, it could also create around 40,000 jobs. According to a 2021 study, this number of jobs could have a much bigger impact. For every direct employee of the semiconductor industry, an additional 5.7 jobs are supported in the wider economy.

Show me the money

The CHIPS Act provides $280 billion in funding over the next 10 years. Most of this is for scientific R&D and commercialization.

$2 billion of funding will be allocated the Department of Defense, funding research, fabrication and training. Another $500 million will go to the Department of State to work with foreign government partners on supply chain security.

For the last few years the risks of sourcing chips from overseas have been shown in all their glory. Compared to the 37% of global semiconductors made in the US in the 90s, only 12% are made here now. The CHIPS Act was introduced to reduce the reliance on other countries, and boost commerce and employment domestically.

Despite this, some experts say that the CHIPS Act may not be able to cover the costs it intends to. GS Research said due to the higher production costs in the US vs Taiwan, the funding may not cover it. Although they expect the Act will increase production, they do not believe it will make a difference of more than 1% to the US share of global chip capacity.

No matter the cost

There is a lot of uncertainty in the electronics market right now, 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.

Categories
Electronic Components

Process nodes and transistor density

process node

Process nodes and transistor density

There are regular news articles published claiming that the smallest ever process node has been produced. We hear all the time about how small chips are becoming. But how can we measure this progress and does size really matter?

Moore’s Law

The concept of Moore’s Law, loosely, is that the number of transistors in a microchip increases as the size decreases. Originally, when Gordon Moore observed this in 1965, it was thought that the number of transistors would double every two years, but this rapid rate has definitely slowed.

Even so, there is still a constant increase in the number of transistors that can fit on an IC. In 1971, 6 years after the advent of Moore’s Law, there were around 2.3 thousand transistors on a single chip. This sounds like a lot, but we can now fit hundreds of millions onto one.

Nowadays, as it probably always was, it is a race between manufacturers to produce the smallest, most advanced chips. And with the advancement of manufacturing technology, the stakes are higher than ever.

Process nodes

The main method of measuring electronic component progress now is through process nodes. This is the term used for the equipment used for semiconductor wafer production. It describes the minimum repeatable half-pitch (half the distance between two identical features on a chip) of a device. It seems, though, that even this node measurement is no longer accurately used, according to some sources.

Some recent node announcements come from big players in the industry, including Intel, Samsung and TSMC. Taiwan’s largest semiconductor company, TSMC, recently announced that it would be converting its 3nm process node into 1.4nm. Critics, however, were not sure how possible this would be.

Samsung also recently revealed its plans to start manufacturing 2nm process chips in 2025. Additionally, Intel is planning on producing 1.8nm chips in late 2024. Part of the process of developing smaller process nodes is changing the technology involved in production.

What is the measure of a chip?

The method of measuring chips by process nodes is not entirely accurate and can be quite ambiguous. Some people have suggested chip density within the chip would be a better indicator of advancement.

While companies compete to develop the smallest process, some companies are fitting more chips onto bigger nodes. To put it in perspective, Intel’s 7nm process has 237 million per millimetre squared. In comparison, TSMC’s 5nm chip has only 171 million per millimetre squared.

So, although certain chips may have a smaller process node, it doesn’t necessarily reflect how advanced the chip actually is. Intel often uses density to describe its chips, because that is much more beneficial to them.

It’s a process

The question is, should all chips be measured this way instead of in process nodes? If process nodes aren’t accurate to their original definition, the measurements don’t indicate of the highest power chips out there. This might be confusing to consumers when choosing a manufacturer.

It will become increasingly difficult to measure in process nodes as chips get increasingly smaller. Many manufacturers are already making plans for when they begin to measure in Angstrom rather than nanometres. If the changeover from one measurement type to another was not confusing enough, if the measurement method is inaccurate, it may get very complicated.

Apparently, though, transistor count can be just as inaccurate because there is no standard way of counting them. The number of transistors on a single chip design can vary by 33-37% which is quite substantial.

The final node

Unfortunately, there’s no definitive answer on how to measure the advancement of chips anymore. Moore’s Law is far from dead, but is very much up to interpretation these days. Those purchasing or sourcing chips will have to have their wits about them.

For those sourcing chips, contact Lantek. We can source day-to-day or hard-to-find components with ease and can guarantee our customers the best price. Get in touch via sales@lantekcorp.com or call us on 1-973-579-8100 

Categories
Electronic Components

India increasing chip manufacture

Resins and coatings
Electronic technician holding tweezers and assemblin a circuit board.

India increasing chip manufacture

In recent years India has been increasing its share in the electronics industry, planning to become a hub in the future.

Currently India has a lot of dependence on imported chips, heavily relying on the Chinese supply chain. One of its goals is to be, in part, autonomous in its chip production. The supply chain issues brought about by covid and other global factors really highlighted this.

But it is not easy to just move production of something so complicated to another country. It would require massive amounts of funding to reshore production.

Make in India

In 2021 the Indian government announced funding equal to $10 billion to improve domestic production over the next 5 years. Several companies have put in bids for the funding, including Vedanta, IGSS Ventures, and India Semiconductor Manufacturing Corp.

The funding is part of the Government of India’s ‘Make in India’ plan, encouraging investment and innovation in the country. Prime Minister of India Narendra Modi announced the initiative in 2014, focusing on 25 sectors including semiconductors and automobiles.

Domestic reliance

One of India’s goals is to move away from reliance on imports, on which they currently spend $25 billion annually. Only 9% of India’s semiconductor needs are met domestically. If production is reshored in part, this would increase local jobs and income for the country.

As it stands, India currently has more of a focus on R&D but don’t have fabs for assembly and testing. The nearby Singapore and manufacturing powerhouse Taiwan provide most of its current stock.

A change in the air, and in shares?

The recent approval of the Chips Act in the US means there may be a shift in industry shares. At the moment America has a 12% share, but if production is re-shored this may impact the Asian market.

However, India and the US, alongside the UAE and Israel plan to form an alliance. With financial aid from the bigger players, the alliance plans to focus on infrastructure and technology.

India was the US’s 9th largest goods trading partner in 2021, with $92 billion in goods trade in 2019. India is also the EU’s 10th largest trading partner, but with domestic semiconductor industry growth this might change.

India’s end equipment market revenue was $119 billion at the end of 2021. Its annual growth rate is predicted to be 19% in the next 5 years.

India is aware of the importance of the semiconductor industry, and set up an India Semiconductor Mission (ISM) in 2021. Its goal is to create a reliable semiconductor supply chain, and to become a competitor against giants like the US.

Relish the competition

India’s potential in the semiconductor industry is increasing, and there is likely to be more investment in the future. It is difficult to tell how much further down the line it would be before India becomes a competitor, but the coming years are sure to be interesting.

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Electronic Components

The effect of AI on the electronics supply chain

AI chips

The effect of AI on the electronics supply chain

AI and machine learning technology is improving all the time and, consequently, the electronics industry is taking more notice. Experts predict that the application of AI in the semiconductor industry is likely to accelerate in the coming years.

The industry will not only produce AI chips, but the chips themselves could be harnessed to improve the efficiency of the electronic component supply chain.

What’s included

In an AI chip there is a GPU, field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs) specialized for AI.

CPUs were a common component used for basic AI tasks, but as AI advances they are used less frequently. The power of an AI depends on the number and size of transistors it employs. The more, and smaller, the transistors, the more advanced the AI chip is.

AI chips need to do lots of calculations in parallel rather than sequentially, and the data they process is immense.

Think about it

It’s been proposed by some that designing AI chips and networks to perform like the human brain would be effective. If the chips acted similarly to synapses, only sending information when needed, instead of constantly working.

For this use, non-volatile memory on a chip would be a good option for AI. This type of memory can save data without power, so wouldn’t need it constantly supplied. If this was combined with processing logic it could make system on a chip processors achievable.

What is the cost?

Despite the designs being created for AI chips, production is a different challenge. The node size and costs required to produce these chips is often too high to be profitable. As structures get smaller, for example moving from the 65nm node to the latest 5nm, the costs skyrocket. Where 65nm R&D cost $28 million, 5nm costs $540 million. Similarly with fab construction for the same two nodes, price increased from $400 million to $5.4 billion.

Major companies have been making investments into the R&D of AI chip infrastructure. However, at every stage of the development and manufacturing process, huge amounts of capital are required.

As AI infrastructure is so unique depending on its intended use, often the manufacturers also need to be highly specialized. It means that the entire supply chain for a manufacturer not yet specialized will cost potentially millions to remodel.

Beauty is in the AI of the beholder

The use of AI in the electronics industry could revolutionize how we work, and maximize a company’s profits. It could aid companies in supply forecasts and optimizing inventory, scheduling deliveries and so much more.

In every step of the electronics supply chain there are time-consuming tasks that AI and machine learning could undertake. In the sales stage, AI could assist with customer segmentation and dynamic pricing, something invaluable in the current market. It could additionally prevent errors in the manufacturing process and advance the intelligence of ICs and semiconductors manufactured.

Artificial intelligence

We’re not quite at the stage where AI has permeated throughout the industry but it’s highly likely that it will in the coming years. That said, this blog post is all speculation and is in no way to inform decisions.

Lantek can provide all types of electronic components, no matter what you’re building. See how we can help you by getting in touch today. Contact us at sales@lantekcorp.com, or use the rapid enquiry form on our website to get results fast.

Categories
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.