The  World  has  just  started  recovering  from  COVID-19  impact,  but  now  facing  some  other  challenges  in  the  manufacturing  industries.  The  two  significant  challenges  we  are  facing  are;  (1)  raw  material  shortages,  and  (2)  employee  shortages.  Raw  material  shortages  and  supply  chain  issues  have  caused  high  demand,  long  lead  times,  and  dramatic  price  increases.  One  of  the  main  raw  material  shortages  in  the  Electronics  manufacturing  industry  is  semiconductor  IC  (chip)  shortage.  The  world  market  of  semiconductor  is  facing  this  crisis  due  to  the  unavailability  of  base  material  and  rare  earth  metals  needed  to  make  these  chips.  These  factors  result  in  significant  price  increases,  20-70  weeks  of  lead  time,  and  uncertainty  of  supply.


Global Factors which make the semiconductor shortage worst:

  • The electromedical industry raises the production of medical devices to fight the COVID-19, causing high demand for semiconductors.
  • The necessity of virtual work and online schools cause the high demand for telecommunication and personal equipment.

Following are some chip production industry specific events that also contributed to current situation:

  • One of the largest semiconductor manufacturing companies in Japan, named Renesas was closed due to fire.
  • A rare snowstorm in Texas, stopped semiconductors production in many companies.
  • The biggest semiconductor manufacturing company in Taiwan is already running at 100% capacity and has no room to increase the production any further.
  • The relation between the US with China has interrupted supply chain of certain raw material.

AalokTronix (ATI) is aware of these growing challenges. With the help of our global connections, supplier relationships, and pre-established supply chain; ATI can help its clients to find semiconductors and other raw materials in a shorter time with the best possible pricing.

Avoid the Procurement shortages of your PCBA projects by reaching out to us. We know the importance and urgency of your next Printed circuit board assembly. Let’s discuss to see how ATI can solve this problem for you.