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
Electronic Components

Semiconductor industry and UK Government

The government has responded to a report released late last year on the UK semiconductor industry.

The report, released by the Business, Energy and Industrial Strategy (BEIS) Committee, details recommendations on how the UK semiconductor industry needs to improve to keep up with global development. It also emphasises the urgency to publish the UK’s long-awaited semiconductor strategy.

The Department of Digital, Culture, Media & Sport (DCMS) released the response to the report in early February. It is the latest in a chain of government responses to increased calls for government support for the semiconductor industry.

The response

Some of the main points covered in the response included:

·         The UK is currently working with international allies to guarantee and safeguard the security of the UK chip supply

·         It is important to protect the UK semiconductor industry from external national security threats

·         Cooperation and communication between the industry and the government should be established and maintained

·         The UK should not try and be self-sufficient, but should focus on its strengths and form partnerships to complete the supply chain

Among other topics discussed in the response is the recent purchase of Newport Wafer Fab by Nexperia. Due to certain concerns, Nexperia has been asked by the BEIS to sell 86% or more of the fab. The DCMS declined to comment any further on the matter because of future potential judicial review proceedings.

On a final note the DCMS said it would work closely with all government departments, the BEIS and the Department for International Trade to make the publication and execution of the UK’s semiconductor strategy successful for the industry. The response did not, however, give a timeline for when to expect the long-anticipated strategy.

A quick recap

The UK semiconductor strategy has been in the works for around two years at this point. It is yet to be released. Apparently, it was due to be published in November 2022, but there is still no sign of it.

Many tech-oriented organisations, committees and unions are calling for more urgency on the part of the government. Even before the strategy was announced, people were petitioning for more funding and priority on the UK’s chip industry.

Days after the government response was published, the BEIS, who submitted the original report, was disbanded by the Prime Minister. It has been replaced with the Department of Energy Security and Net Zero

There is still much anticipation for the coming semiconductor industry strategy and the changes it may bring.

Global presence

 

Cyclops’s office is based in the UK, but we have a global network of offices and partners here for you. No matter what component you’re looking for, we can help. Contact Cyclops today on +44 (0) 1904 415 415, or email us at sales@cyclops-electronics.com

Categories
Electronic Components Future

Using AI to design microchips

Artificial intelligence (AI) is on everyone’s mind right now. With the rise of ChatGPT  and other AI software expanding our potential, every industry is wondering how AI can help them. The electronics industry will not miss out.

The market

One company providing industry insights, Deloitte Global, predicted this year semiconductor companies will spend around $300 million on AI tools.

Granted, in the grand scheme of things $300 million is not a huge amount compared to the entire market, worth $660 billion. However, the return on investment is huge and can’t be ignored.

But staff should not fear, these tools are used to help, not replace, engineers. Chip design tools have been created by companies specialising in Electronic Design Automation (EDA). The tools are usually to help engineers design and simulate chips, without the need to physically manufacture them.

The price of the future?

These AI tools aren’t for everyone – a single license could be very pricey, and well above what smaller companies could afford. This would be a small price to pay for those who can afford it though, since the resulting designs could be worth billions.

It is also possible for companies to create their own AI tools in-house instead of buying from an EDA company. This, however, would need the company to have AI expertise already.

The great thing about working alongside AI is it greatly improves efficiency and size of semiconductors. AI tools can design chips under the 10nm process node to make them even smaller and more efficient.

Staff shortages

Another advantage of using AI currently is to bridge the employment and skill gap. Because of legislation like the US and EU Chips Act, there’s a need for many more highly-qualified and skilled people within the semiconductor industry. But filling those new jobs does not happen instantly, in fact it could take years to fully train people to fill those roles. In this case, using AI in the meantime makes perfect sense, giving current engineers room to breathe.

AI already has some sway in the industry. Approximately 30% of semiconductor device makers surveyed by McKinsey said they were already generating value through AI or ML. The other 70% are still only in the starting stages of implementing the technology.

A learning curve

Within the umbrella term of AI, there are technologies that are used including graph neural networks (GNNs) and reinforcement learning (RL). RL is the repetitive running of simulations and finding a positive result through trial and error. AI can run these simulations at such a high speed, and without the use of a physical version of the electronic components.

GNNs, on the other hand, are advanced in other ways. This machine learning algorithm analyses graphs made up of nodes and edges, extracting information and making predictions. Because the structure of a chip share a similar structure to these graphs, GNNs can be used to analyse and optimise chip structure.

I Robot

One thing you don’t need artificial intelligence for is knowing that Cyclops is your best choice. When you’re looking for electronic components, whether obsolete or everyday, call Cyclops for the best prices and delivery time for your components. Get in touch today at sales@cyclops-electronics.com, or call us on +44 (0) 1904 415 415.

Categories
Future

What is Borophene?

Borophene is one of the newest innovations in the two-dimensional material market and could have many uses in the future.

There has been an increasing interest in 2D materials in recent history. It started with graphene in the early 2000s and borophene is one of the latest.

The material itself wasn’t synthesised until 2015, but it was first simulated in the 90s to see how boron atoms would form a monolayer. To synthesise the material, boron atoms were condensed onto a pure silver surface.

The arrangement of silver atoms makes boron form a similar structure, but there can be gaps in it, giving the material a unique structure.

Advantages

Borophene has been found to have a lot of benefits, including its strength, flexibility and is a superconductor. Not only that, but it conducts both electricity and heat, and its purpose can be altered depending on the structure.

One of borophene’s more interesting abilities is how it can act as a catalyst. It can break down molecular hydrogen ions, and hydrogen and oxygen ions from water. Hydrogen atoms also stick to borophene, meaning it could be a potential material for hydrogen storage. In theory the material could store more than 15% of its weight in hydrogen, much more than its competitors.

Borophene is also being touted as the next anode material in future, more powerful lithium-ion (Li-ion) batteries. Borophene is said to have the largest storage capacity of any 2D material.

Disadvantages

There are several drawbacks to borophene as well. It can’t currently be used widely, and it is difficult to make in large quantities. The benefit of having a reactive material can also be a disadvantage, when it’s vulnerable to oxidation. The production process is costly, too.

Despite these negatives, there are hopes borophene will have a multitude of uses in the near future. Aside from Li-ion batteries, catalysis and hydrogen storage, it can also be used for flexible electronics.

Another potential future usage is the use of borophene for gas sensing applications thanks to its ability to absorb gas. Its large surface-area-to-volume ratios make it suitable for gas sensors too.

An optimistic outlook

If borophene can be manufactured in large quantities, it could be used in many applications in the future. It will be an interesting few years watching the development and progression of this material.

That will be helpful down the line, but in the here and now look to Cyclops. We have all the electronic components you need and will go out of our way to source reliably. Contact us today at sales@cyclops-electronics.com or call us on +44 (0) 1904 415 415.

Categories
Component Shortage

Australia’s semiconductor industry

Australia is not a country known for its chip production, but it felt the shortages as much as the rest of us. Despite the shortages being less severe for the country, however it still mostly relies on imported semiconductors.

The current semiconductor industry is quite small, consisting of local companies and branches of some larger manufacturers.

One report from 2020 gave a blunt prognosis of how the Australian chip landscape looked, and how it could improve:

How it is

According to the report there are ‘pockets’ of talent all over Australia, and the potential for it to grow substantially. However, the report authors said the sector lacked the depth and coordination it needed to grow.

The ever-increasing need for electronic components globally means that every country needs to step up their game. Australia is no different. Although total self-sufficiency would be unattainable, that is the same for even semiconductor superpower countries. They do, however, need to increase their capacity for electronic component development and manufacturing.

Following establishing domestic sources of semiconductor components, Australia needs to tackle market sectors relevant to them domestically. This way, it is dealing with both the strategic and economic aspects of the shortages.

How to do it

The report details several steps to help the Australian semiconductor market grow and prosper. The first piece of advice is to attract established chip manufacturers to start setting up shop domestically. After that, home-grown chip companies need a boost to expand. The final recommendation is to establish new semiconductor companies.

Australia has been looking into all 3 of these methods, and some international companies have shown interest in recent years. But when it comes to the huge funding needed to finance the moves, international partners have been less keen.

Time and money

Because there’s currently such a lack of a domestic market, and other markets are so far removed for Australia, there’s some hesitation. This could change in the future, if Australia can garner more interest and, more importantly, funding.

The 2020 report recommended the Australian government invest $1.5 billion to establish domestic industry.

Australia faces many obstacles including financing, a lot of them time-sensitive. The next few years will be crucial for the country, and the world will be watching.

Choosing certainty

There are few things that are certain in this tumultuous industry, but there is one thing that’s reliable: Cyclops Electronics is there for you. We have a sales team here to solve all your stocking and sourcing needs. Not only that, but we have a broad range of stock ready for you, all you need to do is get in touch. Contact us at sales@cyclops-electronics.com or call us on +44 (0) 1904 415 415.

Categories
Electronic Components

EU Chips Act developed further

Following a vote on Tuesday 24th of January, the latest drafts of the EU Chips Act and the Chips Joint undertaking were adopted by The Industry and Energy Committee.

Proposals for the EU Chips Act were first published in February of 2022, and has since developed through committee discussions. The European Commission said the Act was developed in response to the industry chaos catalysed by the pandemic in 2020.

Now, after so long, the final vote is just around the corner.

There are three main elements to the Act:

The Chips for Europe Initiative is aimed at supporting capacity building and large-scale innovation. This is hoped to strengthen the EU as a player in the semiconductor manufacturing industry. It will increase funding for R&D, training and tech start-ups, among other things.

The Act also plans to secure the supply of semiconductors to the EU by way of investment. They also plan on increasing capacity in manufacturing, packaging and advanced testing. Alongside that, it hopes to enable the opening of integrated production facilities and open EU foundries.

Another purpose of the Act is to coordinate a crisis response between EU member states and monitor supply of semiconductors. If supply is watched, shortages and demand can be anticipated and trigger countermeasures.

Funding

The EU claims that the initiatives and funding within the Chips Act will aid it in its goal of doubling its global market share by 2030. Going from 10% market share to 20% is quite a leap, and the Act in total only mobilises €43 billion.

The European Commission said they hoped the Act’s funding would be boosted, or even ‘matched’  by private investment. This would immensely boost what the Act could be capable of, well beyond 2030.

Provisions

Article 11 of the Act details the concept of the new Open EU Foundries. These new ‘first-of-a-kind’ facilities will design and produce electronic components for other industry players. There will also be Integrated Production Facilities, which design and produce components for their own market. For these facilities to qualify for funding they have to fit certain criteria, including committing to innovation.

Something else the Act addresses is the training of industry staff. It has been a continuous challenge for the sector in Europe to attract highly-skilled persons to work in semiconductors. The Chips for Europe Initiative will support education, training and skilling, while also providing placements and apprenticeships.

The vote in plenary is due to take place in February. From there it would be the last step before European Commission, Parliament, and Council negotiations.

Why not act now?

Despite the electronics industry changing every day, Cyclops Electronics is a safe, reliable choice to source all your electronic components. We have a dedicated sales team and an extensive stocklist to make sure you get everything you want. Contact Cyclops today at sales@cyclops-electronics.com, or call us on +44 (0) 1904 415415.

Categories
Electronic Components Future Supply Chain

India increasing chip manufacture

In recent years India has been increasing its share in the electronics industry, planning to become a hub in the future.

Currently India has a lot of dependence on imported chips, heavily relying on the Chinese supply chain. One of its goals is to be, in part, autonomous in its chip production. The supply chain issues brought about by covid and other global factors really highlighted this.

But it is not easy to just move production of something so complicated to another country. It would require massive amounts of funding to reshore production.

Make in India

In 2021 the Indian government announced funding equal to $10 billion to improve domestic production over the next 5 years. Several companies have put in bids for the funding, including Vedanta, IGSS Ventures, and India Semiconductor Manufacturing Corp.

The funding is part of the Government of India’s ‘Make in India’ plan, encouraging investment and innovation in the country. Prime Minister of India Narendra Modi announced the initiative in 2014, focusing on 25 sectors including semiconductors and automobiles.

Domestic reliance

One of India’s goals is to move away from reliance on imports, on which they currently spend $25 billion annually. Only 9% of India’s semiconductor needs are met domestically. If production is reshored in part, this would increase local jobs and income for the country.

As it stands, India currently has more of a focus on R&D but don’t have fabs for assembly and testing. The nearby Singapore and manufacturing powerhouse Taiwan provide most of its current stock.

A change in the air, and in shares?

The recent approval of the Chips Act in the US means there may be a shift in industry shares. At the moment America has a 12% share, but if production is re-shored this may impact the Asian market.

However, India and the US, alongside the UAE and Israel plan to form an alliance. With financial aid from the bigger players, the alliance plans to focus on infrastructure and technology.

India was the US’s 9th largest goods trading partner in 2021, with $92 billion in goods trade in 2019. India is also the EU’s 10th largest trading partner, but with domestic semiconductor industry growth this might change.

India’s end equipment market revenue was $119 billion at the end of 2021. Its annual growth rate is predicted to be 19% in the next 5 years.

India is aware of the importance of the semiconductor industry, and set up an India Semiconductor Mission (ISM) in 2021. Its goal is to create a reliable semiconductor supply chain, and to become a competitor against giants like the US.

Relish the competition

India’s potential in the semiconductor industry is increasing, and there is likely to be more investment in the future. It is difficult to tell how much further down the line it would be before India becomes a competitor, but the coming years are sure to be interesting.

Categories
Electronic Components Future Technology

The effect of AI on the electronics supply chain

AI and machine learning technology is improving all the time and, consequently, the electronics industry is taking more notice. Experts predict that the application of AI in the semiconductor industry is likely to accelerate in the coming years.

The industry will not only produce AI chips, but the chips themselves could be harnessed to improve the efficiency of the electronic component supply chain.

What’s included

In an AI chip there is a GPU, field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs) specialized for AI.

CPUs were a common component used for basic AI tasks, but as AI advances they are used less frequently. The power of an AI depends on the number and size of transistors it employs. The more, and smaller, the transistors, the more advanced the AI chip is.

AI chips need to do lots of calculations in parallel rather than sequentially, and the data they process is immense.

Think about it

It’s been proposed by some that designing AI chips and networks to perform like the human brain would be effective. If the chips acted similarly to synapses, only sending information when needed, instead of constantly working.

For this use, non-volatile memory on a chip would be a good option for AI. This type of memory can save data without power, so wouldn’t need it constantly supplied. If this was combined with processing logic it could make system on a chip processors achievable.

What is the cost?

Despite the designs being created for AI chips, production is a different challenge. The node size and costs required to produce these chips is often too high to be profitable. As structures get smaller, for example moving from the 65nm node to the latest 5nm, the costs skyrocket. Where 65nm R&D cost $28 million, 5nm costs $540 million. Similarly with fab construction for the same two nodes, price increased from $400 million to $5.4 billion.

Major companies have been making investments into the R&D of AI chip infrastructure. However, at every stage of the development and manufacturing process, huge amounts of capital are required.

As AI infrastructure is so unique depending on its intended use, often the manufacturers also need to be highly specialized. It means that the entire supply chain for a manufacturer not yet specialized will cost potentially millions to remodel.

Beauty is in the AI of the beholder

The use of AI in the electronics industry could revolutionize how we work, and maximize a company’s profits. It could aid companies in supply forecasts and optimizing inventory, scheduling deliveries and so much more.

In every step of the electronics supply chain there are time-consuming tasks that AI and machine learning could undertake. In the sales stage, AI could assist with customer segmentation and dynamic pricing, something invaluable in the current market. It could additionally prevent errors in the manufacturing process and advance the intelligence of ICs and semiconductors manufactured.

Artificial intelligence

We’re not quite at the stage where AI has permeated throughout the industry but it’s highly likely that it will in the coming years. That said, this blog post is all speculation and is in no way to inform decisions.

Cyclops can provide all types of electronic components, no matter what you’re building. See how we can help you by getting in touch today. Contact us at sales@cyclops-electronics.com, or use the rapid enquiry form on our website to get results fast.

Categories
Component Shortage

The tech industry is bracing for a potential shortage of passive electronic components

By now, everyone has heard of the global semiconductor shortage. Still, the tech industry is bracing itself for an altogether larger shortage of passive electronic components that could reduce manufacturing output across multiple categories.

Passive components do not generate energy but can store and dissipate it. They include resistors, inductors (coils), capacitors, transformers, and diodes, connecting to active elements in circuits. Passives are necessary for circuit architecture, so the shortage is bad news for the electronics industry as a whole.

The current state of the passive component shortage 

The truth is there has been a shortage of certain passive components since the coronavirus pandemic hit in 2020, particularly with multilayer ceramic capacitors (MLCCs), which can be difficult to get hold of in large quantities.

Certain diodes, transistors and resistors are also in shorter supply than they were in 2019, partly because of the pandemic and a shift in manufacturing investment for active components, which have a higher margin.

You also need to look at consumer trends (what people are buying). Smartphone and smartwatch sales are higher than ever, and smart ‘Internet of Things’ devices are growing in popularity rapidly, not to mention in availability.

These devices require a lot of passive components. For example, a typical smartphone requires over 1,000 capacitors. Cars are also huge consumers of passive components, with an electric car requiring around 22,000 MLCCs alone.

The trend for next-generation technology adoption is up across all categories, be it the Internet of Things, edge computing, semi-autonomous cars and 5G. Passive components are in more demand than ever at a time when supplies are under pressure.

Price rises are now inevitable 

The price for most passive components has risen by the largest amount in over a decade in 2021, caused by supply and demand economics and a price explosion for common materials like tin, aluminium and copper, as well as rare earth metals.

While some suppliers can afford to take a hit on profits, for most, raising prices is inevitable to ensure the viability of operations.

With higher component prices and greater shortages, it is more important than ever for companies to bolster their supply chains. Complacency is dangerous in today’s market, and no company is immune to disruption.

How to beat the passive components shortage 

The passive components shortage is likely to get worse before it gets better, but there are several ways you can bolster your supply chain:

  • Equivalents:Specifying equivalent passive components is a sound way to keep your supply chain moving. When a specific passive component isn’t available, an equivalent may be available that functions in exactly the same way.
  • Ditch outdated components:Outdated components have limited or no manufacturing output when discontinued. Upgrading to modern components that are manufactured in larger quantities can help you meet demand.
  • Partner with a global distributor:Global components distributors like us source and deliver day-to-day, shortage, hard-to-find and obsolete electronic components. We can help keep your supply chain moving in uncertain times. Contact us today SALES@CYCLOPS-ELECTRONICS.COM