There are many challenges facing the chip industry, despite the semiconductor supply chain no longer being in crisis.
The semiconductor shortages are much more under control than they were between 2020 and 2022, but the effects can still be felt. There are various components that are in more demand, like surface mount devices (SMDs), multilayer ceramic capacitors (MLCCs) and SMD resistors. There are also whole industries taking a big hit, like the automotive industry and consumer market.
Many companies have switched to manufacturing these higher-demand products to optimise production and profit during these shortages.
Some fabs are still dealing with manufacturing delays due to closures and lockdowns. Although most of these facilities have reopened this year, but since lockdowns began several manufacturers have expanded their operations in other countries.
There have also been several new initiatives to increase domestic production and reshoring introduced recently. These include the US CHIPS Act, and the European Chips Act, both of which aim to bolster their countries’ places in the global semiconductor market. With these expansion plans manufacturers’ capacity and ability to cater for customers has also increased.
Advancements in robotics, AI, and digitalisation have greatly improved the efficiency of the industry. As semiconductors and microchips have gotten more powerful but smaller, it has given rise to a new generation of technology. This, if implemented in a fab setting, can increase output and improve speed without the need for more facility space.
Optimisation of current facilities might be expensive, but will benefit companies with a more immediate effect than building new fabs, which would take years.
There are many other initiatives that companies that can adopt to optimise in the wake of the supply chain chaos, including expanding their customer base and collaboration with other companies.
Throughout the semiconductor shortages Cyclops has been
ensuring that its customers get the electronic components they need with the shortest lead times possible.
No matter what the circumstances, our impeccable customer support will never change. To see our expertise first-hand, contact us at sales@cyclops-electronics.com or call us today on +44 (0) 1904 415 415.
