US ban on chip tech could hurt China 

The US’ latest ban on advanced electronic design automation (EDA) software exports to China might hinder Chinese chip companies from accessing advanced semiconductor technology, as they attempt to upgrade to 3-nanometer processes in the next three to five years, market researcher TrendForce Corp (集邦科技) said yesterday.

Source: US ban on chip tech could hurt China – Taipei Times

Supply Chain Disruptions up 46% From Last Year

When it comes to global supply chain disruptions, it’s almost easier to list events that didn’t happen over the past year. In the first half of 2022, disruptions were up an “astounding” 46 percent year-over-year (YoY), according to Resilinc, a supply chain risk consultancy. That’s 7,929 events.

Source: Supply Chain Disruptions up 46% From Last Year

Manufacturing Pace Eases in June as Orders Weaken

A gauge of U.S. manufacturing activity in June fell to its lowest level in two years as orders contracted, curbed by lingering supply and labor constraints and some softening in demand. An electronics industry measure of component sales also eased in June, falling into contraction territory for the first time since July of 2020.

The Institute for Supply Management’s PMI declined to 53 percent last month from 56.1 percent in May. New orders dropped nearly 6 points to 49.2, the lowest reading since May 2020 when the economy was recovering from the impact of Covid-19. Any reading above 50 indicates expansion.

Source: Manufacturing Pace Eases in June as Orders Weaken

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. Typically, when demand and margins for a semiconductor line start to decline, chip makers phase out production but give users the opportunity for a last-time-buy (LTB). The production volume of LTB devices is based largely on customer forecasts.

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

Copper Volatility Impacts MLCC Supply Chain 

Copper is a metal that is consumed primarily in the electrical industry for multi-conductor cable, but which also is used in powder and paste form in the electronic component industry in a very limited but important capacity – as the termination material for the hundreds of billions of multilayered ceramic chip capacitors produced worldwide each year.

Its unique metallic structure of copper makes it an excellent conductor and lends itself to uses in conjunction with base metal electrodes to form the conductive links between capacitance and circuit functions of the printed circuit board.

Source: Copper Volatility Impacts MLCC Supply Chain | TTI, Inc.

Why The Chips Are Down: Explaining the Global Chip Shortage 

The supply chain bottlenecks we’re experiencing across the globe start with components. Rather, they start with component shortages. Of all the component shortages, by far the most severe is for certain semiconductors, or chips. The current global chip shortage rivals only a few of the past imbalanced markets. However, it’s unique in the breadth of product families feeling the gap in supply and demand.

Source: Why The Chips Are Down: Explaining the Global Chip Shortage | Jabil

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