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Tag: semiconductor industry

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Technology

Does ChatGPT understand semiconductor shortages?

For something slightly different this week, we had a little chat with ChatGPT about the semiconductor industry.

AI has been prolific in recent years, and ChatGPT specifically has been all over the news since its release in late 2022. So we were curious what the AI chatbot thought of the industry we are all so invested in.

So, here’s what we asked:

What caused the semiconductor shortages in 2020?

We specified a year because the scope of simply “semiconductor shortages” is endless.

ChatGPT first responded by saying it was brought on by a “combination of factors”. Possibly predictably, it listed the COVID-19 pandemic as the first cause. People moving to home-working and home-schooling, combined with the factory shutdowns and logistics headaches heavily impacted the industry.

Next, ChatGPT said the trade relations between China and the US affected the market. Restrictions and tensions led to China purchasing less from the US, while American manufacturers moved to concentrate on the automotive industry.

Thirdly, increased demand in electric vehicles (EVs) and other high-tech products was also a factor.

Lastly, ChatGPT said that the industry’s reliance on a “just-in-time” model was only sustainable when demand is stable.

All of ChatGPT’s full responses will be available at the end of this blog for full transparency.

What are the main challenges facing the electronics industry today?

Once again, COVID-19 was at the top of ChatGPT’s list.

According to the chat bot, the pandemic showed the “vulnerability” of global supply chains and risk mitigation is now higher on companies’ priorities list.

Next, the “ripple effect” caused by the shortages continues to affect prices and electronic component shortages.

Increasing labour costs and raw material price increases were also on ChatGPT’s list. The bot additionally, brought up regulatory compliance being an issue for companies, specifically small and medium businesses.

Finally, it said the constant need for innovation and the “growing problem” of e-waste as other challenges facing the industry.

What do you think?

How do you feel about ChatGPT’s responses? Do you think it is accurately representing what is going on in the electronics industry or is there something that it missed?

We’d love to know your opinion on ChatGPT and its perception of the electronics market. Chat with us on LinkedIn and share your thoughts with us!

 

Disclaimer: ChatGPT does not reflect the views of Cyclops Electronics, for transparency all of our questions and ChatGPT’s full responses are listed below.

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How electronics shortages may affect Christmas

Christmas Shortages

Christmas is just around the corner, and while many shortages have calmed there are some that persist and will have an impact on the usual holiday festivities.

Despite reports that shortages are ending, more than half of semiconductor industry leaders (56%) are expecting them to continue into 2023.

There are shortages that we have been prepared for as the months counted down to the holidays. However, other shortages may catch some unawares.

Much of the news regarding shortages has revolved around the difficulty producing new, smaller nodes. These are the semiconductors going into new consumer electronics, often purchased as Christmas gifts.

What was expected:

As semiconductor shortages persist, next-gen consumer electronics will be in limited supply. Demand always spikes around the holidays, as consumers prepare for the gifting season. But some will be out of luck since electronics have also been affected by the shortages.

While consumer electronics, including smartphones, smart home devices, and games consoles have become slightly more stable, there will still be shortages in the face of holiday buying and events like Black Friday.

This also affects the manufacture of new cars, both fuel and electricity-powered models. Many car companies have lowered the number of vehicles produced. Although they haven’t been able to meet the increased demand, semiconductor shortages mean they cannot produce more.

What you didn’t expect:

New electronic components are not the only ones that are in short supply. Older components and obsolete electronic parts have also become scarcer.

Embedded flash microcontrollers are one component that has long been used in automotive manufacture. Most of the ones used are still using older nodes, like 90nm. So while new cars are being affected, older cars in need of repair will also be impacted.

Industrial electronics are also at risk due to shortages, since they similarly rely on legacy nodes. Traditionally these would be the more stable of options for electronic components. However, the reserves that have taken years to build are now being drained.

Although companies are planning on investing in legacy nodes, the shortages are expected to last until at least 2024, if not 2025.

The shortages show no sign of stopping, and manufacturers will be dealing with the effects of it for years to come. There are surely plenty of electronic components and markets affected that have not been mentioned here, so this overview is by no means exhaustive.

What to expect

As shortages persist, there’s no better time to get in touch with us.

Cyclops Electronics have an extensive supply of day-to-day and obsolete electronic components. If you have been struggling to source components elsewhere, Cyclops Electronics is there for you.

Let us provide your Christmas miracle this year, call us on +44 (0) 1904 415 415 or email us at sales@cyclops-electronics.com.

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Electronic Components

Passive and Interconnecting Electronic Components market to display lucrative growth

The passive and interconnecting electronic components market is predicted to display lucrative growth across all regions over 2020-2025, with North America the dominant market due to the prominence of players in the country.

These predictions come from The Passive and Interconnecting Electronic Components market report from Market Study Report, which you can request a sample of here. The report delivers a rigorous analysis of the market, examining the main growth drivers and restraints, as well as opportunities for revenue cycles.

The passive and IEC markets are forecasted to experience a CAGR (compound annual growth rate) of 3.1% from 2020-2025, with the US market expected to reach $32.3 billion by 2025, up from $28.6 billion in 2020.

Key players in the industry include:

  • ABB
  • API Technologies
  • AVX Corporation
  • ST Microelectronics
  • 3M Electronics
  • Fujitsu Component
  • American Electronic Components
  • Hamlin
  • Eaton Corp.
  • Datronix Holding Ltd

As the world gets smarter and demand for passive and interconnecting electronic components increases, small players will also take a bigger role. Trade barriers caused by geography will need to be overcome to meet demand, fuelling an explosion in growth across all developed markets, from Europe to Asia Pacific.

What is fuelling growth?

While the report provides in-depth analysis of factors that will fuel growth, we don’t want to tread on its toes, so we’ll provide a simpler analysis.

The reason the passive and interconnecting electronic component markets are going to experience significant growth over the next several years is because of industry tailwinds and technological advancement. Given today’s technological innovation, it’s no wonder that demand for all types of electronic component is soaring.

Disruptive new technologies, rapid advancement in existing technologies and the adoption of smarter, more connected devices, is fuelling unprecedented demand for everything from passive components to chips.

For example, in 2021, manufacturing of passive components could see an 11% increase, but demand is likely to exceed 15%.

Making supply meet demand

There has been a lot of talk about how the next great technological cycle will fuel growth for the semiconductor industry, but it’s important to recognise that chips are nothing but silicon and metal without other components like passives and IECs.

While supply for some components like display drivers is ticking along, there is a global shortage for other components like active, passive and electro-mechanical components, putting manufacturers in a compromised position.

The shortage for some IECs and passive components is expected to last several years, so making supply meet demand will be a challenge in the near future.

To make supply meet demand, suppliers and manufacturers will need to partner with well-connected distributors. Electronic component distributors are the best-connected players in the supply chain, linking sellers with buyers and vice versa.

Sourcing and allocating shortage electronic components is something that we specialise in at Cyclops. We help source components that are impossible to find, helping to keep supply chains moving and manufacturing plants going.

With the passive and interconnecting electronic components market set to soar, planning is essential to make supply meet demand and capitalise on growth.

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