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.