Categories
Electronic Components

Counterfeit electronic component detection

How to benchmark your suppliers' counterfeit mitigation process

When you work in the electronic components industry, it is inevitable at some point you will come face-to-face with counterfeit electronic components. It is a veritable stone in the shoe of the electronic component industry, worth hundreds of billions of dollars. 

No matter where you are purchasing your parts from, having a good understanding of the steps and processes that your electronic components supplier follows for mitigating the risk of counterfeit parts is critical to protecting your supply chain and long-term reputation.  

With over 30 years of experience in the electronics industry, specialising in hard to find and obsolete components, at Cyclops Electronics we have a lot of knowledge when it comes to identifying and avoiding counterfeit electronic components. Our team of highly qualified inspectors have accumulated almost a century of experience between them, and we take pride in how vigilantly we deal with this supply chain havoc-wreaker. 

In this post we would like to share some of our know-how on how to detect counterfeit electronics and our testing and processes for electronic components counterfeit mitigation. It will arm you with the information you need to make informed, wise decisions about which brokers to work with and who works to the highest standards. 

What are counterfeit electronic components?

To make sure we are all on the same page, it is probably best that we define what a counterfeit electronic component is.  

A counterfeit, or ‘suspect’ electronic component is any component that is deliberately misrepresented in its production. Often counterfeit components are used to copy and profit off more high-quality, reliable electronic component manufacturers.  

There is a chance that the counterfeit components would work with the same function as their original counterpart. The issue arises when they do not have the longevity, or integrity, of the original. Buyers can end up spending a fortune on parts that will not work or will damage their circuitry, and there will be no one to hold to account. This is why it is so vital to have trusted brokers in your supply chain, so the risk to you is minimised.  

There are countries that are more infamous for the amount of counterfeit electronics produced there, but they can come from anywhere. Professionals at every stage of the supply chain have to be vigilant to mitigate the risk of counterfeit components to their customers.  

As long as there has been chip shortages, there has been a counterfeit industry, with new prolific methods accompanying each decade. In the 90s, among other things, it was counterfeit SRAM during the shortage. Then the 2000s began with counterfeit tantalum capacitors during the component’s allocation period.  

What do counterfeit electronic parts look like?

Most of the inspections undertaken within Cyclops Electronics facilities – or in vetted test houses we work with – are undertaken with highly specialised equipment.  

Here are some relatively common electronics counterfeit giveaways to look out for when you are inspecting electronic components: 

Evidence of packaging tampering

If you receive your components and the packaging looks damaged, this is the first sign to suspect they are counterfeit electronics. The packaging may look damaged beyond reasonable transportation wear and tear, or the tape may look tampered with.  

Key indicators of this include: 

  • Water damage 
  • Puncture marks 
  • Packaging does not match previous deliveries 

If this is the case, there is a chance that the electronic components have been tampered with or switched. It is worth notifying the vendor and the courier to make them aware of this issue, whether counterfeit is detected or not. 

A box with a DHL shipping label on it. The tape sealing the box reads 'repacked'
An industry example of goods that have been repackaged

Verify all included information

A white box with 'Vishay General Semiconductor written across it, however 'general' has been misspelled with an 'I' instead of an 'L'
An industry example of counterfeit packaging with spelling errors

All electronic components should come with packaging documentation and product datasheets are available online.  

Check the following information: 

  • Date code 
  • Part number 
  • Sealing date 
  • All other displayed information 
  • Packing date was after the date of manufacture.  
  • Spelling mistakes. Just like with spam emails, this is sometimes the easiest way to detect a counterfeit electronic component. 

The importance of the ‘golden sample’ 

In electronic component counterfeit detection, the ‘golden sample’ is an electronic component, reel or tray that has come directly from the manufacturer or from a franchised distributor. It is good practice to compare all, or at least any suspect incoming goods, to a golden sample. If there are discrepancies, it is a good indicator of potential counterfeit. 

Something unique and specialist that Cyclops can offer above its competitors is our cross-database checks. Thanks to our years of experience in the industry we have built a huge database of electronic component images. We can compare incoming goods to these industry standards where other providers don’t have the same resource.

Count and consistency

Usually when you buy electronic components they will be in trays, reels or cut tap. You may even get bags of components delivered to you. So, count them. There will often be partial factory quantity, so make sure you have the correct count ordered. 

More than just the outer packaging of the components, the quality of the inner packaging can be indicative too. If a reel is discoloured or warped, it can indicate damage or tampering, and the same applies to the orientation of parts on a tray or reel. Parts may have been removed and replaced if they are not all oriented in the same direction.  

Electronic counterfeit detection methods

A lot of the ways to detect counterfeit electronic components mentioned above are included under the banner of visual inspection. It is often the first line of defence when avoiding counterfeit electronic parts. There are more advanced, accurate tests that often need to be used to minimise the risk of counterfeit components 

Decapsulation and delidding

Decapsulation involves the corrosion of the top layer of a component to check the internal die wafer and wafer bonds. Cyclops uses an acid-free DPA System, instead of the traditional wet chemical process. This method is much cleaner than the wet chemical alternative, and means our staff are not at risk of inhaling any harmful chemicals. 

Decapping is commonly used for devices with plastic packaging. Once the package cavity is exposed the internal die wafer can be checked. It should match the golden sample in layout and structure. It is a form of destructive testing – once this test is performed, the part cannot be used.  

X-ray testing and XRF

X-ray testing shows defects through the electronic component without having to damage the die wafer inside. X-ray fluorescence (XRF) testing takes this a step further and can tell you the material composition of the component.  

In XRF an x-ray beam is directed at the component’s surface, then the atoms in the component produce a fluorescent x-ray beam that is processed by a detector. The differences between the energy of the original and x-ray beam correspond to different elements, which shows the elements used in manufacturing. Usually counterfeit components will have a slightly different material composition to parts directly from the manufacturer. 

Resurfacing, acetone and scrape testing

There are other effective forms of testing for avoiding counterfeit electronic components. 

Similar to decapping, remarking and resurfacing testing use solvents to corrode the top layers of a component. This, however, isn’t trying to get all the way to the wafer inside. It instead detects if the identification information on the component has been altered or remarked. It is not a destructive test since the wafer inside is left undamaged. 

The process counterfeiters often use is called ‘blacktopping’. The original chip markings are sanded off and a polymer coating is painted over to cover up the sanding markings 

Scrape testing is a similar, manual way of removing the top layers of a component. This shows if a component has had a clear coat applied to it, which is acetone-resistant and lowers the chances of counterfeit being revealed by remarking or decapsulation testing. 

The datasheet shows the discrepancies between the original and counterfeit component

The process counterfeiters often use is called ‘blacktopping’. The original chip markings are sanded off and a polymer coating is painted over to cover up the sanding markings 

Scrape testing is a similar, manual way of removing the top layers of a component. This shows if a component has had a clear coat applied to it, which is acetone-resistant and lowers the chances of counterfeit being revealed by remarking or decapsulation testing. 

Electrical testing/Curve trace testing

A relatively simple method is to test the component. Curve trace machines can test current, voltages, diode resistivity and silicon connectivity. This will detect any physical damage caused by heat, electrical overstress or electrostatic discharge damage.  

Choose Cyclops Electronics to avoid electronic counterfeit components

Nonfranchise distribution channels are a vital and legitimate part of any supply chain, particularly in the case of legacy products where parts may no longer be in production. The electronics industry has realised that, as counterfeiters become more and more proficient, there is not a ‘one size fits all’ measure that can be used to combat fraudulent parts entering the supply chain. 

At Cyclops Electronics, quality is at the core of everything we do. From our industry-leading component testing program to our commitment to continuous improvement, the quality of our components and service is our key tool to drive the highest customer satisfaction year after year. 

When it comes to counterfeit mitigation, component analysis is a crucial element to protect our customers’ supply chain.  

At Cyclops Electronics we continuously and thoroughly vet and monitor our supply chain. Since we also have a presence in China, we have the advantage of controlling our incoming goods from Asia in real time on a local level. A large proportion of counterfeit goods often come from China, but because of our presence there we can be much more vigilant than other brokers.  

The Cyclops counterfeit inspection process

Goods coming into the Cyclops warehouse go through a vigorous inspection process on arrival before they are even booked in. All components are photographed and undergo inspection based on the type of part, age, supply chain and specific customer requirements. Basic checks are performed, such as checking the quantity, part numbers and RoHS compliance. 

Our experienced inspectors have the training and technical expertise to ensure quality product reaches the end customer. Parts are then tracked through a barcode system, from supplier delivery note right though to customer despatch.  

Following this, if the parts are still factory sealed, we perform visual checks. If the components are not factory sealed, we are very diligent in our need for further testing. High resolution and secondary checks are undertaken, and testing continues depending on whether the part passes. 

We have very strict protocols in place for testing, and it always follows our process flow. For destructive tests like decapsulation, these are only undertaken in very specific circumstances and need to be requested by the customer. Thankfully, our combination of specialised testing facilities and our team of dedicated inspection staff mean these tests are not often required. 

At Cyclops Electronics we have several optical magnifiers that we use in-house. This includes, but is not limited to, Opticron Hand magnifiers, the vision engineering mantis and the Amscope microscope. We also perform acetone testing, black top testing, reel counters and decapsulation testing. 

Categories
Component Shortage

How are semiconductor companies dealing with current industry challenges

There are many challenges facing the chip industry, despite
the semiconductor supply chain no longer being in crisis.

Semiconductor industry challenges

Focusing on high-demand products

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.

Capacity expansion

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.

New technologies and Industry 4.0

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.

We’ve got you covered

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. 

Categories
Electronic Components

The Life of Gordon Moore

Gordon Moore, co-founder of Intel and creator of Moore’s
Law, has passed away at the age of 94.

The Gordon and Betty Moore Foundation announced on March 24
that Moore had passed away at his home in Hawaii.

Humble beginnings

As a child, Moore was more interested in chemistry
than electronics. After completing his bachelor’s, Moore achieved a doctorate
in physical chemistry in at the California Institute of Technology in 1954.

After working at the Applied Physics Laboratory of Johns
Hopkins University in Maryland, Moore wanted more. He was given the opportunity
in 1956 to work at the recently formed Shockley Semiconductor. This company is
thought to be responsible for creating California’s Silicon Valley.

Less than a year later, Moore and a group of scientists and
engineers formed their own company, Fairchild Semiconductor. He rose through
the company to become the director of research and development. During his time
there, Fairchild developed the planar process, the base process needed to
produce an IC. Moore also greatly contributed to the development of the MOSFET
during his time at Fairchild.

Moore’s Law

One of the things Moore is renowned for is the initial
prediction of Moore’s Law. Moore
predicted all the way back in 1965 that the number of transistors fitting on a
given area would double each year. 10 years later he adjusted his hypothesis to
every two years. This prediction still rings mostly true today.

Just a few years after the initial prediction, Moore and
long-time colleague Robert Noyce decided to found a new business. Thus, Intel
Corporation was created. After initially being the executive vice president,
Moore eventually became CEO and chairman of the board.

After Intel

Moore became stepped down as CEO in 1987, and worked as the
chairman and chairman emeritus before stepping down completely in 2006. Following
his retirement and beforehand in the early 2000s, Moore established a
charitable foundation with his wife Betty. Since its founding, The Gordon and
Betty Moore Foundation has donated more than $5.1 billion to charitable causes. 

Categories
Component Shortage Electronic Components Supply Chain

Cyclops Electronics – Looking back on 2022

Cyclops Electronics has had a monumental year. With a hugely successful Electronica, an exciting business acquisition, and plenty of special team moments to remember. 2022 has made its mark in style.

 

Team wide fun and games

This year we have initiated a weekly delivery of fresh fruit for all of the office to enjoy. It has proved to be a big hit and a great boost of natural goodness into the working day. It’s the perfect antidote to our regular pizza days.

For Stress awareness month in April, we organised picnic lunches for everyone and raffled off a wellness hamper.

At Halloween we stirred up a right cauldron of treats, a quiz curated by a staff member, and a Mummy wrapping game to get everyone in the spooky spirit.

We also celebrated Valentine’s Day, Wimbledon, and most recently the World Cup with full office decoration and goodies on tap. To mark the festive period hot chocolate and mince pies are now a permanent fixture in our kitchen.

Christmas fundraising has been great fun, supporting ‘Save the Children’ with Christmas jumper day and producing a sizeable contribution to a worthy cause.

 

Halfin

In April the Cyclops Group officially announced the acquisition of Belgium-based company Halfin Electronics. Shared values of collaboration, family values and dedicated professionalism made it a natural fit for the Group.

Halfin has enabled Cyclops to add Belgium to its list of international offices, including USA, China, Canada, Italy and Portugal.

The business was established in 1946, and has since built a global clientele and a speciality in vacuum tubes and other niche electronic products. It has been a wonderful addition to the Cyclops family.

Electronica

Electronica was the event of the year for all of us here at Cyclops. A team of nine staff from a range of departments attended the event. Aside from meeting a plethora of new customers, we also caught up with a lot of returning customers. The event was very important to us, since there hasn’t been an in-person Electronica since 2018. We were eager to reconnect with clients and businesses.

Not only did the team make lasting connections with businesses there, but were able to bond as a team and successfully run a trade fair stand. We’re so proud of them for continuing a Cyclops tradition that has been in place for decades.

And finally… 

A few words from our Sales and Marketing Manager, Ros Shaw:

“2022, what a year it has been… looking back at heatwaves, weather extremes, component shortages, supply chain disruption, political turmoil, economic uncertainties and more shortages, it’s been another eventful one. But one constant remains and that is that the Cyclops Team have delivered, day in and day out.

It was a real highlight of our year to chat with many of our appreciative customers at Electronica in Munich. Sharing plans for the New Year, developing strategies for sourcing in 2023 and discussing upcoming projects has enabled us to prepare. And that’s what it’s always been about, preparing and equipping the business to best serve the needs of our customers. Now more than ever we strive to adapt, evolve and innovate to keep stride with this fast-paced world.

We look forward to ranking highly on your ‘most useful’ list this time next year. Thank you for including us in your team. Here’s to 2023 and all of its adventures.”

 

Categories
Component Shortage Electronic Components Future Supply Chain Technology

Ukraine – Russia conflict may increase global electronics shortage

Due to conflict between Russia and Ukraine, both of whom produce essential products for chip fabrication, the electronic component shortage across the globe may worsen.

Ukraine produces approximately half of the global supply of neon gas, which is used in the photolithography process of chip production. Russia is responsible for about 44% of all palladium, which is implemented in the chip plating process.

The two leading Ukrainian suppliers of neon, Ingas and Cryoin, have stopped production in Moscow and said they would be unable to fill orders until the fighting had stopped.

Ingas has customers in Taiwan, Korea, the US and Germany. The headquarters of the company are based in Mariupol, which has been a conflict zone since late February. According to Reuters the marketing officer for Ingas was unable to contact them due to lack of internet or phone connection in the city.

Cryoin said it had been shut since February 24th to keep its staff safe, and would be unable to fulfil March orders. The company said it would only be able to stay afloat for three months if the plant stayed closed, and would be even less likely to survive financially if any equipment or facilities were damaged.

Many manufacturers fear that neon gas, a by-product of Russian steel manufacturing, will see a price spike in the coming months. In 2014 during the annexing of Crimea, the price of neon rose by 600%.

Larger chip fabricators will no doubt see smaller losses due to their stockpiling and buying power, while smaller companies are more likely to suffer as a result of the material shortage.

It is further predicted that shipping costs will rise due to an increase in closed borders and sanctions, and there will be a rise in crude oil and auto fuel prices.

The losses could be mitigated in part by providing alternatives for neon and palladium, some of which can be produced by the UK or the USA. Gases with a chlorine or fluoride base could be used in place of neon, while palladium can be sourced from some countries in the west.

Neon could also be supplied by China, but the shortages mean that the prices are rising quickly and could be inaccessible to many smaller manufacturers.

Neon consumption worldwide for chip production was around 540 metric tons last year, and if companies began neon production now it would take between nine months and two years to reach steady levels.

Categories
Component Shortage Electronic Components Supply Chain Technology

The global electronic component shortage – what happened?

Arguably the biggest ongoing crisis in the tech industry is the global semiconductor shortage. You can’t go far online without seeing news about it, and many people have seen it firsthand when trying to buy a brand-new car, or a recently released games console.

When did it start?

The obvious factor contributing to the shortage is COVID-19. The virus infected millions and sent the world into lockdown, which then led to the housebound masses logging in and going online.

At the start of lockdown in March 2020, 60% of 18-24-year-olds were increasing their use of home delivery instead of leaving the house. Amazon’s revenue also rose at a quicker pace than in previous years, with the company making $88.91 billion in Q2 2022.

Alongside the increase in online shopping came an increase in other digital activities like PC and console gaming. In the last quarter of 2020 desktop, notebook and workstation sales rose to a record 90.3 million units. Tech company Sony saw 25% of its revenue come from game and network services, and around 18% from electronics products and solutions.

In another case of bad timing, both Microsoft and Sony were about to release their next generation of game consoles, and Nintendo Switch sales were booming. All of this meant demand for components was skyrocketing.

This then led to delays in car manufacturing. Why? Because all the available chips were being bought up by computer and electronics manufacturers, so there were none left for the automotive industry. A car part may need between 500 and 1,500 chips, and are used for many parts including the dashboard display and to control the airbag.

There were other elements that contributed to the shortage before this: The US and China had been imposing increasingly high tariffs on each other for the past two years, and natural disasters and fires took out several factories in Japan, Taiwan and China.

When will it end?

The comeback from the semiconductor shortage will not be quick. Some factories that were shut down by natural disasters are still repairing the damage and trying to reopen production. But as the demand is staying high, there will need to be new facilities created to cater for the increase in demand.

The time, expertise and money needed to start a new factory will be too much for smaller firms to manage, so then the hole in the market needs to be filled by larger corporations like Intel and Samsung. Both companies currently have plans to open new fabs in America, but it will be a while before they can start production.

Intel’s ambitious plan to construct the one of the largest chip factories ever in Ohio would alleviate demand, but is not due to start production until 2025. Similarly, Samsung’s Texas fab will not be operational until 2024.

Despite smaller factories opening, the substantial backlog will not be solved by these alone. There will need to be a combination of an increase in production, time efficiency and, with the pandemic in mind, automation to decrease person-to-person contact. There will also need to be a stock of chips manufactured to avoid shortages in future.

Europe and America have both put an emphasis on increasing their domestic chip production in the next decade, in the hopes that this will prevent importing issues in the future.

The speed at which technology is currently being developed also puts manufacturers in a tight spot. Not only are more electronic devices being produced all the time, but the technology of the components within them is also advancing quickly.

While it is difficult to forecast entirely, experts say the shortage could last a few more years. Hopefully with the opening of the larger plants estimated for approximately the same time, the chip shortage might be mitigated by 2025.

We can help

The market is currently just as competitive in the case of other electronic components, but Cyclops can help. With our extensive stock of day-to-day and obsolete components we can supply you when others cannot.

For all your component needs, contact Cyclops Electronics today at sales@cyclops-electronics.com. Or submit a rapid enquiry through our website.

Categories
Component Shortage Electronic Components Future Supply Chain Technology

The European Chips Act and its impact on electronic component sales

Semiconductors are vital for our day-to-day life. They are in all the electronics you own but are also in your kitchen appliances, your car, your electric shower and many more. But what if we lost access to these components?

The huge reliance on imported semiconductors was made abundantly clear last year. Europe’s current share of the global semiconductor market is only about 10%, and the continents is otherwise dependent on supply from abroad.

The need for independence and autonomy in the European chip market has been made very apparent due to factors like Brexit and COVID-19.

The European Chips Act was first mentioned in the EU’s 2021 State of Union Letter of Intent, calling the act a key initiative for 2022. The EU created the Industrial Alliance for Processors and Semiconductor Technologies alongside it, to plan and oversee progress on the act.

One of the aims of the alliance is to increase Europe’s share in global chip production to 20% by 2030, but they will first have to identify issues with the market and map out a way to improve design and production.

During the ‘State of the World’ Special Address by European Commission president Ursula von der Leyen on January 20, the chips act was mentioned once again, and they announced draft legislation for the chips act is due in February of this year.

The European Commission president said that there would be five steps taken to improve the chip sector, and that they would focus on research first, then design and manufacturing. After these there would be an adaptation of state aid rules to increase provisions in case of shortage.  Lastly, she said the EU would work to support smaller, innovative technology companies.

In 2020 the United States accounted for the largest share in the semiconductor industry, with 47%. Following the US was South Korea with 20% of the market. China’s share has also increased quickly in recent years, putting it narrowly behind Korea. Despite Japan previously having a larger share in the market, they are currently on equal footing with Europe with a share of around 10%.

Despite no longer being a member of the EU, and therefore not directly signing the Chips Act, the UK could also have the potential to increase its standing in the global semiconductor race.

According to some UK-based chipmakers, the country has an advantage in the area of research and development. If research facilities like the University of Manchester were given the right attention and funding, they could develop sustainable resources like graphene to replace mined silicon in processors.

The UK electronics sector will always be considerably smaller than huge countries like China and America, but with significant investment they would have the ability to make a difference in the current chip shortage. And Cyclops is a perfect example of a smaller company making a big difference.

Cyclops is an electronic component distributor with a wealth of contacts from all over the world. With unrivalled stock and suppliers, Cyclops will put you ahead of your competitors. Contact us today at sales@cyclops-electronics.com.

Categories
Component Shortage Electronic Components Future Supply Chain Technology

Latest electronic component factory openings

We’ve all heard about the shortages in standard components like semiconductors and chips. Cars, phones and computers, items we use every day, are no longer being produced at the speedy rate we’ve come to expect. The cause of this shortage is, in part, due to the COVID-19 pandemic.

This is especially noticeable in Europe and America, where production has often been outsourced to Asia in the past.

So who are the latest companies expanding operations, and how much are they spending? Check out our quick run-down of factories and when they should open:

Company: Intel

Location: Ohio, USA

Product: Chips

Completion date: 2025

Cost: $20 billion (£14.7 billion)

The latest, and possibly greatest, announcement on our list comes from Intel. The corporation revealed in January that they would be committing to building two chip manufacturing plants in New Albany, Ohio. The move is said to be due to supply chain issues with Intel’s manufacturers in Asia, and should boost the American industry with the creation of at least 3,000 jobs. Construction should begin this year.

Company: Samsung Electronics

Location: Texas, USA

Product: Semiconductors

Completion date: 2024

Cost: $17billion (£12.5billion)

The household name announced late last year that they would begin work on a new semiconductor-manufacturing plant in Taylor, Texas. The Korean company stated the project was Samsung’s largest single investment in America, and is due to be operational by the middle of 2024.

Company: Infineon

Location: Villach, Austria

Product: Chips

Completion date: 2021

Cost: 1.6 billion (£1.3 billion)

After being in construction since 2018, Infineon’s Austrian plant became operational in September last year. The chip factory for power electronics, also called energy-saving chips, on 300-millimeter tin wafers began shipping three months ahead of schedule in 2021, and its main customer base will be in the automotive industry.

Company: Northvolt

Location: Gdańsk, Poland

Product: Batteries

Completion date: 2022

Cost: $200 million (£148 million)

The Swedish battery manufacturer is expanding its operations with a new factory in Poland. While initial operations are supposed to begin this year producing 5 GWh of batteries, it hopes to further develop to produce 12 GWh in future. Northvolt has also just begun operations at its new battery factory in Skellefteå in Sweden.

Company: Vingroup

Location: Hà Tĩnh, Vietnam

Product: Batteries

Completion date: 2022

Cost: $174 million (£128 million)

The Vietnamese electric vehicle manufacturer is due to start production at its new factory later this year, where it will produce lithium batteries for its electric cars and buses. The factory will be designed to produce 10,000 battery packs per year initially, but in a second phase the manufacturer said it will upgrade to 1 million battery packs annually. VinFast, a member of Vingroup, is also planning on expanding operations to America and Germany.

Company: EMD Electronics

Location: Arizona, USA

Product: Gas and chemical delivery systems

Completion date: 2022

Cost: $28 million (£20.7 million)

The member of the multinational Merck Group is expanding operations with the construction of a new factory in Phoenix, Arizona, to manufacture equipment for its Delivery Systems & Services business. The factory is due to be operational by the end of the year, and will produce GASGUARD and CHEMGUARD systems for the company.

A bright future

These electronic component factory openings signal a great increase in business, and will aide in the easing of the component crisis. But it will take a while for these fabs to be operational.

Can’t wait? Cyclops is there for all your electronic component needs. We have 30 years of expertise, and can help you where other suppliers cannot. Whether it’s day-to-day or obsolete electronic components, contact us today at sales@cyclops-electronics.com, or use the rapid enquiry form on our website.

Categories
Component Shortage Electronic Components Future Supply Chain Technology

Electronic component market to see continued growth by 2027

The electronic component market is set to see continued growth over the next five years, with projections estimating greater demand than ever.

Several forecasts have converged with the same conclusion; demand for components is set to rocket as the world adopts more advanced technologies. 

This article will explore the latest research papers and market analysis from reputable sources. We will also explore why the demand for electronic components is set to soar and the supply chain’s challenges. 

Global components market 

The market analysis covered by Market Watch predicts that the global electronic components market will reach USD 600.31 billion by 2027, from USD 400.51 billion in 2020, a compound annual growth rate of 4.7% from 2021. 

Active components market 

Another market report, this time looking at active electronic components, predicts the active electronic components market will reach USD 519 billion by 2027 (£380bn pounds, converted 12/01/22), a CAGR of 4.82% from 2021. 

Passive and interconnecting components market 

According to 360 Research Reports, the passive and interconnecting electronic components market is projected to reach USD 35.89 billion in 2027, up from USD 28.79 billion in 2020, a compound annual growth rate of 3.2% from 2021. 

Semiconductor wafer market 

According to Research and Markets, the global semiconductor wafer market is predicted to reach USD 22.03 billion by 2027, rising at a market growth of 4.6% CAGR during the forecast period starting from 2021. 

Dynamic Random Access Memory (DRAM) market

Market Reports World predicts the global DRAM market will see extreme growth, growing at a CAGR of 9.86% between 2021 and 2027. The market was valued at USD 636.53 million in 2021 and will grow to nearly USD 700 million by 2027.  

Why is component demand set to increase so much?

The world is undergoing an extreme technological transformation that began with the first computers. Today, electronics are everywhere, and they are becoming ever more intricate and complex, requiring more and more components. 

Several technologies are converging, including semi-autonomous and electric vehicles, automation and robotics, 5G and internet upgrades, consumer electronics, and smart home appliances like EV chargers and hubs. 

This is a global transformation, from your house to the edge of the earth. Electronic components are seeing unprecedented demand because smarter, more capable devices are required to power the future. 

What challenges does the supply chain face? 

The two biggest challenges are shortages and obsolescence. 

Shortages are already impacting supply chains, with shortages of semiconductors, memory, actives, passives, and interconnecting components. We are a global electronic component distributor specialising in hard to find and obsolete electronic components. Email your enquiries to us today at Sales@cyclops-electronics.com. Our specialised team is here to help.

As demand increases, supply will struggle to keep up. It will be the job of electronic components suppliers like Cyclops and electronic component manufacturers to keep supply chains moving while demanding increases. 

Obsolescence refers to electronic components becoming obsolete. While some electronic components have lifespans of decades, others are replaced within a few years, which puts pressure on the supply chain from top to bottom. 

In any case, the future is exciting, and the electronic components market will tick along as it always does. We’ll be here to keep oiling the machine.

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Component Shortage Electronic Components Supply Chain Technology

How Can Companies Combat the Electronic Components Shortage?

Electronic components shortages show no signs of abating, fuelled by growing demand for electronics, limited availability of raw materials, soaring manufacturing prices and lingering COVID-19 disruptions.

Shortages have hindered manufacturers since 2018, but things came to a head in 2020 with the COVID-19 pandemic disrupting supply chains.

The pandemic created an imbalance in supply chains, with demand for many components, from chips to actives and passives, outstripping supply. The question is, how can companies combat the electronic components shortage?

Partner with a distributor 

Electronic component distributors occupy a unique position in the supply chain, representing the manufacturer and customer. Distributors work for both parties to move components up and down the supply chain.

The benefit of working with a distributor is that your company will be in the mix for components not available through traditional channels.

For example, we specialise in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers. We can help you beat allocation challenges and long lead times.

Diversify suppliers

Diversity is the key to strengthening your supply chain. You need multiple sources for electronic components. It’s a good idea to have retail and distribution channels, so you have several routes should one supplier channel fail.

Diversity can also be found in geography. A supplier in your home country is essential, but so are suppliers close to the manufacturing source.  

Expand storage capabilities 

If your company can expand its storage capabilities for essential components, this is the simplest way to combat shortages. By storing large quantities of components, you create a supply separate from the chain.

The risk with expanding storage is procuring more components than you need, resulting in oversupply problems that incur heavy losses.  

Source equivalent components  

When components are unavailable, you can specify equivalents that meet your performance and financial specifications. Equivalent components perform the same job as your original components, but another company makes them.

A simple example is Samsung, which uses its own Exynos chip or a QUALCOMM chip in the same smartphone model depending on where the smartphone is sold.

Visibility and proactive planning 

Supply chains are complex beasts that require visibility to manage. Monthly stock updates are no longer sufficient; to combat shortages, you need real-time supplier updates and an inventory catalogue to keep track of supply.

You can proactively plan component shipments and tap into price dips and new inventory when you have visibility over total supply.

Predict obsolescence

When electronic components become obsolete, manufacturers who haven’t planned for it scramble to find components that will work. This inevitably creates bottlenecks in the supply chain as many big companies compete for orders.

Obsolescence is predictable because all electronic components have a run date, and manufacturers update lifespans with inventory cataloguing. You can avoid shortages and soaring prices for rare parts by predicting obsolescence.  

Have shortages? Speak to us

We’re here to help you deal with electronic component shortages. Contact us here.