Tag: supply chain

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Semiconductor

Semiconductor Stats: Top US States Leading the Charge

USA with electronic components

The United States has always been at the forefront of technological innovation, and the semiconductor industry is no exception. With advancements in AI, IoT, and various consumer electronics, the demand for semiconductors is skyrocketing. The US Semiconductor Ecosystem Map from the Semiconductor Industry Association (SIA), last updated on March 28, 2024, highlights key states excelling in semiconductor manufacturing and R&D. Let’s delve into the top states and understand why they are leading the charge.

Top States for Semiconductor Manufacturing

California (34 Facilities)

California is the leading state in semiconductor manufacturing, with 34 facilities. Since the 1950s, California has made innovation one of its many specialties. Shockley Semiconductor Laboratory opening in 1955 was the first semiconductor facility to open in the state and began the technology hub that would become known as Silicon Valley.

Reasons for choosing California include:

  • Silicon Valley – An innovation centre, home to a high concentration of technology companies and startups.
  • Established supply chains – With a recognised base comes long-existing supply chains and a sturdy infrastructure.
  • Advanced technologies – Numerous modern facilities and the latest manufacturing innovations.

Arizona (28 Facilities)

One of Arizona’s first forays into semiconductors was in 1949, six years earlier than California. That year Motorola Inc. established a research lab in Phoenix, which would later become a transistor manufacturing facility.

Arizona is a popular choice because:

  • Cost-effective operations – Generally lower costs of living and business operations than other states like California.
  • Lessened financial burden – Alongside the lower costs, Arizona has a lot of tax incentives and subsidies to encourage businesses.
  • Good climate – The dry air is ideal for semiconductor manufacturing, reducing humidity-associated risks.

Texas (17 Facilities)

Texas is known for its business-friendly environment, and is well-known for being home to some very large semiconductor companies.

Texas is a contender due to:

  • Attractive business environment – The state offers lower taxes and some incentives for companies.
  • Affordable – Labour, utilities, and real estate are fairly priced, making it an economical choice for companies.
  • Energy – Affordable and reliable energy, a real incentive for energy-intensive semiconductor manufacturing processes.

What do they have in common?

All three states have industry clusters, leading to companies benefiting from being close to each other and sharing knowledge, suppliers, and skilled labour. Additionally, these states offer a high quality of life, which helps attract top talent. Their strategic locations ensure proximity to major consumer markets in the US and excellent connectivity for international trade.

Top States for R&D Facilities

California (87 Facilities)

With 87 R&D facilities, California is the undisputed leader in semiconductor research and development.

  • University and industry: California has a strong university system with established links between industry and academia.

Texas (36 Facilities)

Again one of the top three, Texas has a significant number of R&D facilities dedicated to semiconductors.

  • Educational Strengths: Texas has a number of top-tier universities with strong engineering and tech programs, feeding the industry with fresh talent and original ideas.

Massachusetts (35 Facilities)

Massachusetts is a strong competitor in semiconductor R&D, thanks to its strong educational and industry connections.

  • Academic Excellence: Renowned for its world-class universities including Harvard and MIT (Massachusetts Institute of Technology), the state offers excellent opportunities for collaboration between education and industry.

Top States for Chip Design

California (64 Facilities)

In the end, California is leading the way in all three of these categories, cementing its position as a center of US semiconductor innovation.

  • Education and talent: Proximity to top universities like Stanford, UC Berkeley, and Caltech fosters a strong research and talent pool, and creates a highly skilled workforce.
  • Access to Capital: Significant venture capital presence supports startups and established companies, along with federal and state research grants.

Texas (22 Facilities)

Texas is another US tech hub, with a robust environment supporting semiconductor innovation.

  • Business Environment: Business-friendly tax policies with no state income tax and various economic incentives, including grants and tax credits.
  • Educational Institutions: Strong university system with institutions like the University of Texas and Texas A&M University contributing to R&D and providing a continuous supply of tech graduates.

Arizona (10 Facilities)

Arizona offers a stable environment for chip design, attracting numerous facilities to the state.

  • Education and Workforce: Strong emphasis on tech and engineering education, with universities like Arizona State University and the University of Arizona contributing to R&D efforts.

Innovation and recognition

While California, Arizona, Texas, and Massachusetts stand out as established technology hubs, the semiconductor industry benefits from facilities and infrastructure spread across the entire USA. Many states offer generous incentives and grants to encourage new startups and foster innovation. This wide distribution of resources and support ensures that companies, regardless of location, can contribute to and thrive within the semiconductor sector.

At Lantek Corporation, we are not only committed to supporting the growth and innovation of the semiconductor industry, but we are also steadfast supporters of the established semiconductor supply chain. Our expertise in sourcing both common and hard-to-find electronic components ensures that your manufacturing processes remain uninterrupted. Explore our services and discover how we can help you stay ahead in this fast-paced industry.

Contact Lantek Corporation to discover how we can support your semiconductor efforts with top-quality electronic components.

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Electronic Components

Case Study – A Switch to Efficiency and Cost-Effectiveness

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Case Study – A switch to Efficiency and Cost-Effectiveness

Image of a keyboard with a magnifying glass and text saying "case study"

The Customer

A long-standing USA-based commercial vehicle manufacturer with a history extending over a century.

The Problem: Navigating Increasing Costs and Supply Reliability

The customer was burdened by the frequent price hikes of their original switch. These increases were occurring three times annually, posing a serious financial strain.

Faced with these unsustainable costs, the customer needed an alternative that would not only be cost-effective but also ensure consistent quality and supply reliability. They required a switch that could seamlessly integrate without disrupting their manufacturing processes.

The Solution: Lantek's Tailored Sourcing Strategy

The engagement began through a trusted connection. The buyer at the customer’s end, having worked with a Senior Account Manager from Lantek in various capacities across different organizations, reached out, confident in Lantek’s ability to provide a viable solution.

Utilizing her extensive experience and understanding of the industry, Lantek’s Senior Account Manager leveraged the specifications of the existing switch to cross-reference and identify a suitable alternative. This process involved meticulous matching of PSI, size, and other critical specifications to ensure compatibility and functionality.

The Outcome: Enhanced Operational Efficiency and Cost Savings

The alternative switch sourced by Lantek not only matched the original switch in terms of fit, form, and function but also brought a more stable and predictable pricing structure. This was evidenced by only one price increase since the start of the business relationship with the new provider, in contrast to the thrice-yearly increases of the original switch.

Beyond the immediate cost savings and stability in pricing, the new switch also provided the customer with increased supply reliability. Lantek’s ability to hold stock for up to 12 months ensured that the customer had a consistent supply of the necessary components, buffering them against market fluctuations and supply chain uncertainties.

The customer expressed high satisfaction with both the quality of service and the performance of the alternative switch. Lantek’s solution was acknowledged as instrumental in addressing their primary concerns of cost and supply reliability.

Conclusion: Lantek’s Role as a Strategic Sourcing Partner

By providing a cost-effective, reliable alternative, Lantek not only aided the customer in maintaining their production efficiency but also fortified a relationship built on trust and satisfaction.

This case study serves as a testament to Lantek’s expertise in sourcing and supplying high-quality components, tailored to the specific needs of our customers. Our approach – focusing on understanding the client’s problem, strategic sourcing, and delivering customized solutions – positions us as a trusted and reliable partner in the industry, capable of tackling a variety of challenges with efficiency and effectiveness.

Lantek’s ability to provide second-source alternatives, replacements for obsolete components, and significant cost savings showcases our expertise in addressing similar challenges faced by other businesses.

For businesses seeking reliable second-source alternatives and aiming to control costs, Lantek recommends our scheduled ordering service. This service ensures fixed pricing and stock availability for up to 12 months, protecting against price increases and availability issues.

If you are facing similar challenges in your operations or seeking reliable, cost-effective sourcing solutions, get in touch today on +1 973-579-8100 or email sales@lantekcorp.com. Our team is dedicated to providing you with customized solutions that meet your unique requirements.

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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

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 Semiconductor

Semiconductor cleanrooms

Semiconductor clean rooms

The process of making a semiconductor is a long one, and one of the essential components of the process is the cleanrooms.

What is a cleanroom?

The semiconductor manufacturing process is a very delicate, painstaking process. Cleanrooms have really tight control over many elements,
including temperature, humidity and airflow. These things can all impact the manufacturing process.

Even a single stray particle of dust or a degree below or above the desired temperature could completely alter the semiconductor.

Heat and humidity

Heat can affect the resistance and conductivity of a semiconductor. As a semiconductor’s temperature increases, the conductivity also increases and resistance drops.

Humidity, too, can have a huge impact on the end product. According to Air Innovations, the humidity in a cleanroom should fall between 30% and 50%. These conditions are ideal for stopping bacterial growth and is comfortable for the staff working inside.

Strict regulations

There is a maximum particle count and particle size in place in cleanrooms. This is usually stipulated in ISO requirements, that cleanrooms have to comply with. Depending on the process going on in the cleanroom, the regulations could be more or less stringent.

One of the biggest risk factors to a cleanroom is the people working within it. The staff are required to wear specialist clothing to
prevent cross-contamination, and require a high level of training. It’s also important, this time for the staff’s safety, to design cleanrooms to allow
people to work safely within.

In the event of

The cleanroom filters the air and has mechanisms in place in deal with contamination events.

Due to the demand for semiconductors cleanrooms are often running 24-hours a day. This means they are under a lot of strain and need to
be prepared for any eventuality.

If equipment fails in a cleanroom, all of the components inside are at risk of irreparable damage. These disasters, known as contamination events, can include power glitches, fan failure and pressure malfunctions. Any of these events could be catastrophic if not handled
properly.

Thankfully a cleanroom is unlikely to face a contamination event if it has a well-designs regulation system. If the conditions are tightly
controlled, manufacturers are much less at risk of contamination events.

Squeaky clean

Although we aren’t involved in the manufacturing process, we make sure the electronic components we source for our customers are the best
quality, and we have a guarantee in place to protect you. To hear more about what Lantek can do for you, email us today at sales@lantekcorp.com, or call us on 1-973-579-8100. 

Categories
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 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

US Japan critical minerals agreement

US Japan critical minerals agreement

The US and Japan agreed last week to strengthen their supply chains of critical minerals like cobalt, lithium and nickel.

The agreement

In the agreement, signed on March 28, the partners agreed to not impose export duties between the US and Japan on critical minerals. They also said they would take action to address non-market policies of other countries that impact the critical minerals trade.

As the US diversifies its trading partners, they risk further complications in its critical minerals supply chain.

As part of the agreement the investments made by foreign powers in the industry will be reviewed. The allies will also upgrade their
information-sharing and enforcement in relation to labor rights violations.

Trade Representative for America Katherine Tai said Japan was a valued trading partner. She said the partnership
was a welcome moment to strengthen the critical minerals supply chain.

Japan’s Ambassador to the US, Tomita Koji, added that securing critical minerals was vital. This, he said, was partly due to the
increased demand for electric vehicles and the batteries powering them.

Partners

The two countries made other trade agreements in relation to the semiconductor industry. The countries made an agreement in July last year to create a joint research center for next-generation semiconductors.

The agreement was brought in for similar reasons, to soften America’s relationship China.

The US and Japan said during the launch that they want to establish supply chain resilience in the sector, and said they would build a strong battery supply chain.

Are you looking for a partner?

 

Lantek is a company that always puts its customers’ needs first. We will work with you to make sure we source all the electronic
components you’re looking for. Contact us today on 1-973-579-8100 or via email at sales@lantekcorp.com

Categories
Electronic Components Technology

The Chips Act childcare clause

The Chips Act childcare clause

Semiconductor manufacturers will have to provide affordable childcare for their workers, according to a clause in the Chips Act.

New regulations will mean that companies are required to provide day-care facilities near to their manufacturing sites. They could also provide subsidies to workers so they can pay for childcare separately.

This clause only applies to companies applying for $150 million or more in funding, but other applicants are also advised to put these measures in place.

The NOFO

These measures were released in the First Notice of Funding Opportunity (NOFO) on February 28th. It covers not only childcare provisions, but other measures to improve support for the workforce and their community.

Secretary of the Commerce Department, Gina Raimondo, praised the inclusion of a childcare clause. She has said in the past that a lack of childcare provisions prevented people from returning to work post-pandemic.

According to Raimondo, manufacturers and unions need to work with the department towards some grand goals. She hopes they can hire and train another million women in construction in the next ten years. This, she said, will help meet demand not only in the chip industry but across other industries.

Other requirements

Other provisions in the first NOFO require applicants to show their understanding of the Chips Act’s objectives. They also have to demonstrate partnerships with local governments, a plan for workforce training and supply chain risk and intellectual property theft mitigation plans.

Both the NOFO and the original legislation in the Chips Act will bring any foreign investment under a microscope. While foreign companies can apply for certain manufacturing incentives, there are stipulations. This include ineligibility if the country is listed as a ‘foreign entity of concern’, or if the application is funded by one.

There will be two further NOFOs released further down the line. The second NOFO will be based around semiconductor materials and equipment, and the third will be for R&D facilities.

Act now

Despite all the changes to chip legislation in the US, Lantek is not going anywhere. We will continue to do the best for our customers and make sure all their electronic component needs are met. Whether you’re based at home or internationally, we will harness our global network to ensure you always have what you need. Call us today on 1-973-579-8100, or email us at sales@lantekcorp.com to change your supply chain for the better.