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Tariff Threats Set Off Supply Chain Reaction

There’s a reason it’s called a supply chain. The threat of new tariffs on certain U.S. imports has the electronics manufacturing, distribution and logistics industries planning for increased costs and disruptions while hoping for a better business environment in 2025.Incoming U.S. President Donald Trump said he would impose a 25 percent tariff on all products from Mexico and Canada, and an additional 10 percent tariff on goods from China, on his first day in office.

Source: Tariff Threats Set Off Supply Chain Reaction

Driving Growth in APAC: The Electronics Distribution Sector 

The Asia-Pacific region (APAC), a vast expanse spanning East Asia, Southeast Asia and Oceania, is a powerhouse of economic growth. Countries like China, Hong Kong, Japan and Vietnam make up one of the world’s fastest-developing economic centers. This dynamic region is also a hub for electronics manufacturing and a growing pool of distributors that represent myriad different companies that have set up operations there.

Source: Driving Growth in APAC: The Electronics Distribution Sector | Supply Chain Connect

Distribution: Challenges and Leveraging New Opportunities 

The world’s top electronics distributors are managing a new set of challenges this year. They’re also leveraging new opportunities that are emerging across various sectors. Data centers that support the artificial intelligence (AI) trend, for example, are coming out of the ground at a rapid pace. New “clean energy” facilities and electronic vehicle (EV) infrastructure are also being built to support the world’s shift away from its reliance on fossil fuels. These are just some of the opportunity areas where distributors are lending their expertise, knowledge and experience to myriad different projects.

Source: Addressing Challenges and Leveraging New Opportunities | Supply Chain Connect

Distributors Get Back to Business 

 

As economic challenges begin to level out—and despite a fractious global landscape—the business of global distribution has shown signs of rebounding smartly to pre-pandemic levels. Fueled by a surge in the use of technologies such as artificial intelligence and the Industrial Internet of  Things, distributors are optimistic that the industry is ready for a resurgence.

Source: Distributors Get Back to Business | Supply Chain Connect

Is it Time to Diversify Your Electronics Supply Chain?

There are a lot of reasons why companies diversify their supply chains, with some of the most recent drivers being the pandemic-related disruptions, the global semiconductor shortage and the recent rash of natural disasters and catastrophic weather events.

Source: Is it Time to Diversify Your Electronics Supply Chain? | Supply Chain Connect

WT Microelectronics to Acquire Future Electronics for US$3.8B

TAIPEI, Taiwan and MONTREAL, Canada, September 14, 2023 – WT Microelectronics Co., Ltd. (TAIEX: 3036) (“WT Microelectronics”) today announced that it has entered into a definitive agreement to acquire 100% of the shares of Future Electronics Inc. (“Future Electronics”) for an enterprise value of US$3.8 billion in an all-cash transaction. The strategic transaction is anticipated to deliver long-term, sustainable value to all relevant stakeholders including customers, suppliers, employees, and shareholders through the combination of two highly complementary organizations.

Source: WT Microelectronics to Acquire Future Electronics for US$3.8 Billion – News – Future Electronics Blog

Managing the Now, Preparing for the Future 

After grappling with persisted supply chain disruptions, labor constraints and rising business costs in 2022, electronics distributors welcomed 2023 with open arms. While some of the roadblocks they were facing have since eased – the global chip shortage being one of them (at least for some sectors) – a host of new challenges were waiting right around the corner. High inflation, rising interest rates and recessionary fears are top of mind for many companies right now. The ongoing war in Ukraine, the spate of U.S. bank failures and a labor shortage that appears to be here to stay are also keeping many distributors up at night right now.

Source: Managing the Now, Preparing for the Future | Supply Chain Connect

Distributing Your Component Availability Needs in the Growing World of Obsolescence 

Obsolete electronic components are an issue many companies think about very little – until they have to think about them a lot. In the world of electronic components, IHS Markit reports that the average life cycle of integrated circuits has decreased by about 30 percent over the past two decades. Organizations that partner with a reputable and reliable distributor of fully authorized electronic parts can draw from its vast resources, capture a real-time inventory assessment of their current capabilities and proactively plan for the future to make obsolescence issues obsolete.

Source: Distributing Your Component Availability Needs in the Growing World of Obsolescence | TTI, Inc.

European components distribution reports record 2022

Distribution of European components ended 2022 in a record-breaking fashion. DMASS Ltd. says that unexpectedly robust semiconductor sales and normalizing sales in IP&E (Interconnect, Passive and Electromechanical) components led to reported revenues of EUR 5.03 Billion in Q4, which were 27.8% higher than the same quarter last year. Semiconductors saw record Q3 sales of EUR 3.62 billion, and IP&E finished at EUR 1.41 billion, or 7.9% more than Q4 of the previous year. In total, companies represented in DMASS reported consolidated components revenues of EUR 19.5 Billion for 2022, an increase of 32.6% over 2021.

Source: European components distribution reports record 2022

Distribution Jack Up Export Rules Compliance Efforts

US and European Union laws restricting the export of some electronic components and devices to certain regions of the globe leave little room for dissent or failure to achieve compliance. The cost to companies that even unwittingly violate any of the growing set of rules and regulations can be enormous, in addition to the possibility of jail terms for violators.

Source: Distribution Jack Up Export Rules Compliance Efforts | Latest Articles News

4 Ways to Beat Defense Electronics Supply Challenges

The electronics supply chain — for both civilian and military applications — has faced numerous difficulties over the last several years. They collectively resulted in issues such as order delays and problems getting components from a manufacturer’s usual suppliers. However, the supply chain challenges for the defense sector are even more worrisome because they cause national security risks. People involved in sourcing or supplying electronics for the military must take decisive action to mitigate adverse effects.

Source: 4 Ways to Beat Defense Electronics Supply Challenges

Distribution Outlook for 2023

Challenges remain and the pace of growth may ease, but the2023 Distributors Outlook is decidedly bullish.After three years of challenging, dramatic growth in the distribution arena, key industry executives see a time of leveling off on the near horizon. That won’t mean a decrease in investments, particularly in the digital assets that helped manage the growth and stabilized the pandemic-fueled activity of the recent past.