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Electronic Components Future Semiconductor Technology

What is the Internet of Things?

EveryThing

In terms of IoT, a ‘Thing’ is anything that can transfer data over a network and can have its own IP address. They are most often ‘smart’ devices, that use processors or sensors to accumulate and send data.

These devices have little-to-no need for human interaction, except in cases where the smart device is controlled by a remote control or something similar. Due to the low cost of electronic components and wireless networks being readily available, it’s possible for most things to become, well, Things.

Technically, larger items like computers, aeroplanes, and even phones, cannot be considered IoT devices, but normally contain a huge amount of the smart devices within them. Smaller devices, however, like wearable devices, smart meters and smart lightbulbs can all be counted as IoT items.

There are already more connected IoT devices than there are people in the world, and as more Things are produced this progress shows no sign of slowing.

Applications of IoT

The automation and smart learning of IoT devices has endless uses and can be implemented in many industries. The medical industry can use IoT to remotely monitor patients using smart devices that can track blood pressure, heart rate and glucose levels, and can check if patients are sticking to treatment plans or physiotherapy routines.

Smart farming has garnered attention in recent years for its possibly life-saving applications. The use of IoT devices in the agricultural industry can enable the monitoring of moisture levels, fertiliser quantities and soil analysis. Not only would these functions lower the labour costs for farmers substantially but could also be implemented in countries where there is a desperate need for agriculture.

The industrial and automotive industries also stand to benefit from the development of IoT. Road safety can be improved with fast data transfer of vehicle health, as well as location. Maintenance could be performed before issues begin to affect driving if data is collected and, alongside the implementation of AI, smart vehicles and autonomous cars could be able to drive, brake and park without human error.

What’s next?

The scope of possibilities for IoT will only grow as technology and electronics become more and more accessible. An even greater number of devices will become ‘smart’ and alongside the implementation of AI, we will likely have the opportunity to make our lives fully automated. We already have smart toothbrushes and smart lightbulbs, what more could be possible in the future?

To make it sustainable and cost-effective, greater measures in security and device standardisation need to be implemented to reduce the risk of hacking. The UK government released guidelines in 2018 on how to keep your IoT devices secure, and a further bill to improve cyber security entered into law in 2021.

If you’re looking for chips, processors, sensors, or any other electronic component, get in touch with Cyclops Electronics today. We are specialists in day-to-day and obsolete components and can supply you where other stockists cannot.

Contact Cyclops today at sales@cyclops-electronics.com. Or use the rapid enquiry form on our website to get fast results.

Categories
Component Shortage Electronic Components

Perfect storm’ creates electronic component shortages

A perfect storm has hit the electronic components market, creating supply chain problems that will be felt for several years.

The perfect storm

Even before the COVID-19 pandemic, most electronic component manufacturers were running at 95-98% capacity.

This high demand for electronic components was fuelled by growth in technologies like automation and the Internet of Things – technologies that are only in their infancy now but will mature in the next decade.

This high manufacturing output was felt across all types of components, especially chips (semiconductors, memory) and integrated circuits. It was even difficult to get a hold of some active and passive components in 2019.

Then, in 2020, the COVID-19 pandemic hit. Car manufacturers and other manufacturers affected by shutdowns paused orders for electronic components. Meanwhile, manufacturers benefitting from lockdowns scaled up.

Now, with the development and roll-out of COVID-19 vaccines, industries that shut down have opened up again. But there’s a problem – demand for electronics has not wavered and there isn’t enough manufacturing capacity to serve everyone.

Quite simply, there isn’t enough bread to go around.

Demand is ramping up

We are now in a situation where electronic components manufacturers are running at 99-100% capacity. Demand has soared for all types of components, from chips and memory to diodes and displays. This is squeezing most supply chains.

There are so many contributors to this squeeze. Emerging technologies like AI, automation, virtual reality, augmented reality and machine learning are fuelling demand for smarter chips and data centre modernisation, while technologies like 5G and Wi-Fi 6 are demanding infrastructure rollout, which requires a significant effort.

When it comes to chips, however, cars are the biggest users. Cars can have as many as 22,000 multilayer ceramic capacitors (MLCCs) each. This will increase as cars get smarter (a self-driving taxi sounds great, but it’ll need around 30,000 chips).

Suppliers are slowly adapting

There have been years of under-investment in new foundries and plants. This under-investment has affected manufacturing capacity today.

To their credit, most manufacturers are looking to expand capacity by setting up new foundries or acquiring plants. Trouble is that most plants take years to set up. Some plants that started a build-in in 2017 are still being built.

Staffing is also an issue. The biggest challenge suppliers face is social distancing and COVID prevention policies, which have reduced staff numbers in many factories.

You can’t automate every process in a factory, so it is a given that having limited staff will increase lead times. Some manufacturers have been harder hit than others with this, but all will experience staff shortages during the pandemic.

In addition to this, freight has become more challenging during the pandemic. Things are taking longer to move and there are fewer commercial flights. Global shipping rates have skyrocketed during the pandemic because of this. Higher shipping rates have contributed to price increases for most electronic components.

Weathering the storm

We predicted the electronics component shortage in early 2020 following the UK Government’s national lockdown. We knew supply chains would be squeezed and stretched due to changes in economic output and industry trends.

The best way to weather the storm is to work with us or another reputable electronic components distributor. We focus on delivering outstanding service, with industry-leading quality and dependability. Call us on 01904 415 415 for a chat.

Categories
Electronic Components Future Technology

What does the future hold for the electronic component industry?

The future of the electronic component industry looks very healthy indeed thanks to tailwinds from 5G, robotics and automation, artificial intelligence, edge computing and several other emerging technologies.

A few of the companies destined to benefit from the advancement of these technologies include Infineon Technologies, STMicroelectronics, Würth Elektronik, Eaton Corp, Micron, MaxLinear, Hitachi and Qualcomm. There are hundreds more who are operating foundries and factories at maximum capacity to meet demand already.

Key to meeting the demand is an increase in manufacturing capability, which many companies will have to build through capital expenditure. We are already seeing an increase in investment from many of the aforementioned companies.

As for electronic component distributors, the phrase “a rising tide raises all ships” is a perfect expression. Component distributors like us will see an increase in demand in the future as our world becomes more technology-focussed.

These are the technologies that we see fuelling electronic component growth in the near future (we already mentioned a few in our opening paragraph):

  • 5G
  • Wi-Fi 6
  • Big data
  • Edge computing
  • AI
  • Robotics
  • Biotechnology
  • Batteries and power
  • Displays
  • Semiconductors and GPUs
  • Automated driving
  • Consumer electronics: VR, AR, smartphones, tablets

Every infrastructure, and every product, will need a unique set of electronic components in its design. Factories and foundries will make the components, and electric component distributors will help manufacturers source them.

Meeting the uptick in demand

There’s one certainty in the electronics industry: demand on components increases as technologies become more complex. We see this with semiconductors, which are getting smaller (2nm), with 5G, which requires more components than 4G, and in robotics, which require powerful Lidar guidance systems.

To meet this uptick in demand, there are companies that specialise in making specific components and machines.

For example, Axcelis Technologies, headquartered in Beverly, Massachusetts, makes ion implant equipment vital to semiconductor fabrication. Then we have Micron, who recently announced high-density 3D NAND flash memory.

The innovation and investment in new technologies from leading companies is a clear sign that the electronic component industry is not just healthy, but thriving, despite the disruption caused by COVID-19.

The role of electronic component distributors

Our place in all this as an electronic component distributor is to help our customers (who include OEMs, foundries, factories and assemblers) to source the components they need to operate their business.

We are crucial to our customers because we are a global distributor. We enable industry players to buy electronic components with confidence at competitive prices, and our links in the industry allow our customers to gain a competitive edge.

As demand has increased for electronic components, competition has intensified, and it really isn’t uncommon for companies to have to bid for components. This is the result of a market that doesn’t produce enough components for certain applications. We exist to help all companies source the components they need.

With us, you get a fast response to your enquiries and reliable on time delivery. There’s no better partner to have on your side.

Click Here and visit our site today to use our fast component search tool and enquire with us today!

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