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How electronics shortages may affect Christmas – The known and the unknown

How electronics shortages may affect Christmas

Christmas is just around the corner, and while many shortages have calmed there are some that persist and will have an impact on the usual holiday festivities.

Despite reports that shortages are ending, more than half of semiconductor industry leaders are expecting them to continue into 2023.

There are shortages that we have been prepared for as the months counted down to the holidays. However, other shortages may catch some unawares.

Much of the news regarding shortages has revolved around the difficulty producing new, smaller nodes. These are the semiconductors going into new consumer electronics, often purchased as Christmas gifts.

What was expected:

As semiconductor shortages persist, next-gen consumer electronics will be in limited supply. Demand always spikes around the holidays, as consumers prepare for the gifting season. But some will be out of luck since electronics have also been affected by the shortages.

While consumer electronics, including smartphones, smart home devices, and games consoles have become slightly more stable, there will still be shortages in the face of holiday buying and events like Black Friday.

This also affects the manufacture of new cars, both fuel and electricity-powered models. Many car companies have lowered the number of vehicles produced. Although they haven’t been able to meet the increased demand, semiconductor shortages mean they cannot produce more.

What you didn’t expect:

New electronic components are not the only ones that are in short supply. Older components and obsolete electronic parts have also become scarcer.

Embedded flash microcontrollers are one component that has long been used in automotive manufacture. Most of the ones used are still using older nodes, like 90nm. So while new cars are being affected, older cars in need of repair will also be impacted.

Industrial electronics are also at risk due to shortages, since they similarly rely on legacy nodes. Traditionally these would be the more stable of options for electronic components. However, the reserves that have taken years to build are now being drained.

Although companies are planning on investing in legacy nodes, the shortages are expected to last until at least 2024, if not 2025.

The shortages show no sign of stopping, and manufacturers will be dealing with the effects of it for years to come. There are surely plenty of electronic components and markets affected that have not been mentioned here, so this overview is by no means exhaustive.

What to expect

As shortages persist, there’s no better time to get in touch with us.

Lantek Corp has an extensive supply of day-to-day and obsolete electronic components. If you have been struggling to source components elsewhere, Lantek Corp is there for you.

Let us provide your Christmas miracle this year, call us on 1-973-579-8100 or email us at sales@lantekcorp.com

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Electronic Components

Latest electronic component factory openings

Latest electronic component factory openings

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

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

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

Company: Intel

Location: Ohio, USA

Product: Chips

Completion date: 2025

Cost: $20 billion (£14.7 billion)

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

Company: Samsung Electronics

Location: Texas, USA

Product: Semiconductors

Completion date: 2024

Cost: $17billion (£12.5billion)

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

Company: Infineon

Location: Villach, Austria

Product: Chips

Completion date: 2021

Cost: 1.6 billion (£1.3 billion)

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

Company: Northvolt

Location: Gdańsk, Poland

Product: Batteries

Completion date: 2022

Cost: $200 million (£148 million)

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

Company: Vingroup

Location: Hà Tĩnh, Vietnam

Product: Batteries

Completion date: 2022

Cost: $174 million (£128 million)

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

Company: EMD Electronics

Location: Arizona, USA

Product: Gas and chemical delivery systems

Completion date: 2022

Cost: $28 million (£20.7 million)

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

A bright future

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

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

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Electronic Components

Electronic component market to see continued growth by 2027

Electronic component market to see continued growth by 2027

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

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

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

Global components market 

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

Active components market 

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

Passive and interconnecting components market 

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

Semiconductor wafer market 

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

Dynamic Random Access Memory (DRAM) market

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

Why is component demand set to increase so much?

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

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

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

What challenges does the supply chain face? 

The two biggest challenges are shortages and obsolescence. 

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

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

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

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