EOL: The Chip Shortage You Don’t See Coming

As the global semiconductor industry breaks ground on dozens of new fabs, there’s a side effect that chip makers don’t like to advertise: product obsolescence. Current supply chain dynamics could drive a large number of end-of-life (EOL) semiconductors into short supply.

Source: EOL: The Chip Shortage You Don’t See Coming

Industry Groups Urge Congress to Fix Electronics Supply Chain

Three top industry organizations this week urged U.S. Congress to support legislation that would address challenges confronting the U.S. electronics supply chain.The letter, organized by IPC, urged Members of Congress to support H.R. 7677, the Supporting American Printed Circuit Boards Act of 2022, which would incentivize purchases of domestically produced printed circuit boards (PCBs) as well as industry investments in factories, equipment, workforce training, and research and development (R&D).

Source: Industry Groups Urge U.S. Congress to Fix Weaknesses in Electronics Supply Chain

US Electronics Reshoring Plan Risks Missing the Boat

Reviving the US semiconductor industry will require balanced investment in the entire electronics ecosystem, including assembly and test, as well as printed circuit boards (PCBs), according to industry executives. While U.S. legislators prepare to approve a $52 billion package of incentives to help shore up the domestic semiconductor industry, there are concerns that most of the financial support will go to very profitable chipmakers that don’t need assistance while the struggling PCB segment is overlooked.

Source: EETimes – US Electronics Reshoring Plan Risks Missing the Boat

Two Critical Factors for the Electronics Supply Chain in 2022

 

It is a well-known phrase that a chain is only as strong as its weakest link. With demand for electronics remaining strong, 2022 will be a year when the benefits of true partnership with a distributor will be obvious and abundant for manufacturers.

Source: Two Critical Factors for the Electronics Supply Chain in 2022 | TTI, Inc.

Manufacturing, Economic Growth Close Out 2021 

Reuters reported this week that new orders for domestically manufactured goods rose 1.6 percent in November, with October numbers being revised to reflect growth of 1.2 percent instead of the originally reported 1 percent growth figure.

Source: Manufacturing, Economic Growth Close Out 2021 | Weekly News Roundup for January 7, 2022 | TTI, Inc.

Global semiconductor industry forecasts for 2022

“2021 is the year that everyone remembered that chip mattered,” said Wired Magazine. So far 2022 seems likely to be another fruitful year for the semiconductor industry.

Terry Tsao, global marketing officer and president of SEMI Taiwan, said in Semicon Taiwan on December 28 that investments related to compound semiconductor wafer manufacturing is expected to grow 20% to reach a historical high at US$7 billion in 2021, and is anticipated to grow further to US$8.5 billion in 2022.

Source: Global semiconductor industry forecasts for 2022

The U.S. Economic Outlook and the Future of the Roaring 2020s

These are dynamic times for the U.S. economy and our industry as we continue into the 2020s – or what I’ve been calling “the Roaring 2020s.”Despite a challenging start to the decade, 2021 has shown some very strong year-on-year growth in key economic indicators, and though there may be a slower growth rate in the years ahead, we have definitely seen a recovery out of a pretty steep decline from last year.

Source: The U.S. Economic Outlook and the Future of the Roaring 2020s | TTI, Inc.

SMEs Step Up Supply Chain Sustainability Games

The news headlines are filled with the advances large corporations are making on the environmental sustainability front: Starbucks is storing more carbon than it emits, fully eliminating waste, and replenishing more water than it uses; Unilever sourced 62% of its raw materials from sustainable sources in 2019, and is now using artificial intelligence (AI) and blockchain technologies to get to the point where all materials come from 100% sustainable sources; and Walmart’s Project Gigaton is working to avoid the emissions of 1 billion metric tons of greenhouse gas throughout its value chain.

Source: Small-to-Mid-sized Enterprises Step Up their Supply Chain Sustainability Games | Source Today

US Dept of Commerce announces new system for detecting supply chain shortages

The US Department of Commerce Monday unveiled its Microelectronics Early Alert System, a new system for detecting supply chain shortages in the semiconductor industry. This system is part of President Biden’s program for strengthening supply chains in semiconductor manufacturing, batteries, critical minerals, and pharmaceuticals. Biden signed an executive order on February 24 ordering 100-day supply chain reviews for these four industries. The 100-day report for the semiconductor industry highlighted the globalized and fragile nature of the semiconductor supply chain.

Source: US Department of Commerce announces new system for detecting supply chain shortages – JURIST – News – Legal News & Commentary

Electronics Component Shortage: A Tale of Two Decades

In 2001, there was so much excess component inventory in the supply chain that more than $13 billion worth of semiconductors alone was written down or off by component makers, distributors and customers. People still wince at the memory. In 2021, there’s such a severe shortage of semiconductors that the automotive industry is set to lose more than $100 billion in sales because it can’t get chips. “Desperation” is a term that’s been kicked around.

Source: Electronics Component Shortage: A Tale of Two Decades

Counterfeit Risk Rises When Supplies Run Short

The risk of procuring counterfeit electronics rises considerably during periods of component shortages. With semiconductor supplies remaining tight through the end of 2022, the industry faces a prolonged interval of increased risk. Industry sources have used the word “desperate” to describe the current shortage situation. When a high-priced product such as an automobile can’t be manufactured for lack of a single part, procurement may circumvent approved vendor lists (AVL) for alternative sources of supply.

Source: Counterfeit Risk Rises When Supplies Run Short

It Shouldn’t Be Just Chips

The U.S. Congress and the Biden Administration are hurtling down the track toward investing billions of dollars in the domestic semiconductor manufacturing industry. But there is a flaw in their approach because they are ignoring the broader manufacturing infrastructure that is needed to combine semiconductors with other parts to create reliable electronic systems.

Source: EETimes – It Shouldn’t Be Just Chips