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Component Shortage Electronic Components Future Supply Chain Technology

Procurement executives concerned about digital innovation

Manufacturers are using digital advancements to battle current supply chain disruptions.

Almost all (97%) of those surveyed said they had significant disruptions in their direct materials supply chain.

67% said they were not confident that the technology can cope with the current or near-future challenges.

The most significant technology disadvantages seem to come with lack of visibility into supplier, ‘disjointed’ source-to-pay process with multiple systems, and a lack of spend reporting.

Even more (87%) said modernising the manufacturing procurement and supply chain takes precedence, and it is their biggest challenge yet. A further 92% said avoiding disruptions to their supply chain is their main goal for this year.

Among the main concerns for modernising the supply chain are potential disruptions during implementation, skills shortages, and scale and challenge of change management.

Around half of those surveyed (44%) predicted that the supply chain crisis would begin to calm by 2023. Significantly less (18%) thought it would reduce by the end of this year.

The study surveyed 233 senior procurement executives from US and UK manufacturing companies. It was commissioned by Ivalua, a spend management cloud provider.

See the original press release from Ivalua here.

While Covid-19 was seen as a factor in the supply chain instability, it was not the only culprit. Global supply chains had already been in a vulnerable position, partly due to factors like too much outsourcing and an overreliance on ‘just-in-time’ supply management.

What some are calling ‘outdated technologies’ are slowly being replaced in Industry 4.0. However, the implementation of tech like IoT, AI, machine learning and cloud computing is not a quick process.

The issue may be that this transition period would only further add to the current shortages rather than solving them in the short-term. Most companies are being deterred by this potential loss, and have been avoiding the change for as long as possible.

Whenever digital innovation comes, it will be a gradual and time-consuming process, but businesses will be better off for it.

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Electronic Components Future 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.

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Component Shortage Electronic Components Technology

What is causing the surge in semiconductor and passive components?

As the world becomes smarter and more connected, the components used in electronic circuits are seeing a surge in demand.

Semiconductors and passive components (resistors, capacitors, inductors, transforms) are seeing a surge in demand as chip-heavy vehicles, consumer electronics and smart, Internet of Things devices are produced in larger quantities.

This demand is creating a shortage of semiconductors, integrated circuits and passive components. The situation today is that the factories that make certain components can’t make enough of them. This squeezes supply chains and ramps up the price, creating a high level of inflation passed down the supply chain.

The surge in semiconductor and passive component demand has reached an inflexion point. Demand has outstripped supply for many components, leading to car manufacturing lines shutting down and companies delaying product launches.

Tailwinds fuelling demand  

  • Smart vehicles
  • Consumer electronics
  • Military technology
  • Internet of Things
  • Data centres
  • 5G
  • Satellites
  • Artificial intelligence and robotics

At no other point in history has there been so many exciting technologies developing at the same time. However, while exciting, these technologies are putting strain on the electronic components supply chain.

Passives surge 

Passive components include resistors, capacitors, inductors, and transforms in various specifications. There are thousands of makes and unit models. They are essential to making electronic circuits. Without passives, there are no circuits!

Cars, electronics, satellites, 5G, data centres, Internet of Things, displays, and everything else powered by electricity, depends on passives. As devices get smarter, more components are needed, creating a cycle that will only go up.

Passives shortage 

Certain diodes, transistors and resistors are in shorter supply than in 2020. This is partly because of the coronavirus pandemic, which impacted manufacturing lines. Still, many manufacturers also shifted manufacturing investment to active components with a higher margin, creating a supply imbalance.

Even without these significant bottlenecks, the supply of passive components is downward while demand goes up. For example, a typical smartphone requires over 1,000 capacitors and cars require around 22,000 MLCCs alone. We’re talking billions of passive components in just two sectors.

Semiconductor surge 

Semiconductors (chips, in this case, not the materials) are integrated circuits produced on a piece of silicon. On the chip, transistors act as electrical switches that can turn a current on or off. So, semiconductors and passives are linked.

Chips are effectively the brains of every computing device. Demand for chips is increasing as circuits become more complex. While chips are getting smaller, manufacturing output is only slowly increasing, creating a supply shortage.

Semiconductor shortage 

The semiconductor shortage was years in the making, but things came to a head when the coronavirus pandemic hit.

At the start of the pandemic, vehicles sales dived. In response, manufacturers cancelled orders for semiconductors and other parts. Meanwhile, electronics sales exploded, filling the semiconductor order book left by the automotive sector. When vehicle manufacturing ramped up again, there weren’t enough chips to go around.

Manufacturing limitations are confounding the problem. It takes 3-4 years to open a semiconductor foundry or fabless plant, but investment in new plants in 2018 and 2019 was low. So, new plants are few and far between.

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Component Shortage

Active Electronic Components Market Growing Demand

Active electronic component demand is soaring. The market is expected to grow by a compound annual growth rate of 4.8% during 2021-2026, fuelled by new technologies and faster and more globally available internet connectivity.

What’s driving it?

An explosion of new products with AI and IoT support and tailwinds like 5G are fuelling demand for active components.

Semiconductor devices, optoelectronic devices, and display technologies are significant applications. Examples include smart home appliances, virtual reality headsets, connected medical devices, and electronic ordering systems.

Here’s a non-exhaustive list of active components in high demand:

  • Diodes
  • Transistors
  • Integrated circuits
  • Optoelectronics
  • Sensors
  • Digital and analogue circuits
  • Batteries and power supplies
  • Generators
  • Vacuum tubes
  • CRT / LCD / VFD / TFT / LED displays

The increasing trends of the Internet of Things (IoT), automation, artificial intelligence, machine learning and virtual/augmented reality are expected to fuel demand for active electronic components for years to come.

Challenges lie ahead

This growing demand is not without its challenges. How will manufacturers get a hold of active electronic components if there isn’t enough to go around? Will geopolitical tensions affect supply? How will COVID-19 play a role in the future?

COVID-19

COVID-19 can create supply chain and market disruption and have a financial impact on firms and financial markets. If the virus persists in causing global disruption, this is likely to cause a shortage of active components in the future.

Geopolitical tensions

The US and China’s trade war in 2020 affected chip supplies around the world. Geopolitical tensions remain a risk in the future. Who knows if certain brands will be banned? It’s important that manufacturers stay in the loop to avoid supply chain problems.

Manufacturing bottlenecks

The world is advancing at a rapid rate and electronics components manufacturers are struggling to keep up. While investment in new factories is ongoing, demand may exceed manufacturing capacity, causing a shortage of components.

Price increases

Inflation is making everything more expensive. Add wildly fluctuating exchange rates and increasing demand for active components and you have the perfect recipe for price increases. This could cause a bidding war.

Active components and the future

The future is filled with more technology than you can imagine. Everything will be connected, including your car to your smartphone and your TV speakers to your smart home assistant (e.g. Alexa). Anything electronic can have a chip these days and you can bet innovators will find a way to make everything smart and connected.

With the active electronic components market predicted to increase in value significantly over the next five years, it is essential that companies have a reliable way to source the active components they need.

This is not a matter of beating the competition but a matter of staying operational amid impending shortages. The current chip shortage is a prime example of what can happen if a perfect storm of industry issues occurs.

If you need to source active electronic components, we can help. Email us if you have any questions or call us on 01904 415 415 for a chat with our team.

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Electronic Components Technology

NXP Announces i.MX 9 and i.MX 8 processor line for Intelligent Multi-sensor Applications

NXP Semiconductors has announced a new line of edge processors that deliver a giant leap in performance and security at the edge.

As edge computing rapidly evolves around us and demand for edge computing soars, performance demands are increasing at an exponential rate. This requires a new approach to security, power consumption and performance. Existing edge processors offer a solution now but are not ready for the next generation of real-time data.

Technologies like machine learning, artificial intelligence, robotics, autonomous driving and next-gen wireless infrastructure all depend on the edge. NXP Semiconductors is meeting the challenge with new i.MX 9 and i.MX 8 processor lines.

i.MX 8ULP and i.MX 8ULP-CS

The ultra-low power i.MX 8ULP and i.MX 8ULP-CS (cloud secured) Microsoft Azure Sphere-certified processors have the EdgeLock secure enclave, a pre-configured security subsystem that simplifies complex security technologies and helps designers avoid costly errors. It automates the following security functions:

  • Root of trust
  • Run-time attestation
  • Trust provisioning
  • Secure boot
  • Key management
  • Cryptographic services

The i.MX 8ULP-CS is Microsoft Azure Sphere-certified with Microsoft Pluton enabled on EdgeLock for highly secure hardware. With Azure Sphere, it has chip-to-cloud security built in, enabling use in a wide range of applications.

Both i.MX processors utilise Energy Flex architecture, which delivers as much as 75% improved energy efficiency compared to previous generations.

They have heterogeneous domain processing and 28nm FD-SOI process technology, making them among the most advanced edge chips in the world. The processors have one or two 1GHz Arm Cortex-A35 processors, a 216MHz Cortex-M33 real-time processor and a 200MHz Fusion DSP for low-power voice and sensor hub processing.

Every Azure Sphere-certified i.MX 8ULP-CS device also gets ongoing OS and security improvements for over ten years.

i.MX 9

The i.MX 9 series is NXP Semiconductors’ range-topping high-performance edge processor for intelligent multi-sensor applications.

The i.MX 9 debuts a new generation of processors that have an independent MCU-like real-time domain and dedicated multi-sensory data processing engines for graphics, image, display, audio, and voice. The i.MX 9 series also features EdgeLock secure enclave, Energy Flex architecture, and hardware neural processing.

The i.MX 9 is for the next generation of edge computing applications including machine learning and artificial intelligence. It’s the first NXP line to use the Arm Ethos U-65 microNPU which enables low-power machine learning.

Importantly, Azure Sphere chip-to-cloud security is enabled within the i.MX 9 line, providing a clear upgrade path from the i.MX 8 series.

EdgeLock secure enclave is the big ticket item of the new processor lines, combining complex security technologies into a single pre-configured platform. With device-wide security intelligence, it provides a simplified path to certification, enabling non-stop trusted management services and applications.

So what?

With the release of these new processors, organisations of any size can now pursue IoT development and real-time technologies with the confidence that NXP and Microsoft have laid out a foundation of security via Microsoft Azure. The low-power requirements and chip-to-cloud security deliver innovation in the right areas.

You can find out more about the processors here.

If you are looking for NXP parts contact us today! sales@cyclops-electronics.com