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June, 2021
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China in
Advertising Sales Offices WELLINK
INTERNATIONAL
BUSINESS SERVICES, CO., LTD.
Hong Kong Office Unit 06, 13th Fl. Ricky Centre Mongkok, Kowloon, Hong Kong Tel: 852-311-16973 Fax: 852-311-16975 E-mail:
pcbsmt1997@163.com
Shenzhen Office Room 2301-2302 Chuangshan Centre, No. 6007 Shennan Road, Futian District Schenzhen City, China Tel: 0755-61319388-136 Fax: 0755-83867058 E-mail:
pcbsmt1997@163.com
When the Chips are Down: Managing the Semiconductor Shortage
Continued from page 1
dustries that depend not only on semiconductors, but also on other electronic components. Some of the products that end customers such as OEMs and contract man- ufacturers are challenged with obtaining are discretes, linear analog, microcontrollers and microprocessors, sen- sors, commodities, and high-end logic.
For example, in the
automotive world, manu- facturers are struggling to find the components neces- sary for increasingly con- nected vehicles. Power sup- ply manufacturers who are attempting to increase ca- pacity cannot source the components they need to build manufacturing sys- tems. This shortage and capacity squeeze is likely to continue into next year, with many suppliers announcing that they are fully booked. Even those able to in- crease production capacity have had to shift their manufacturing lines to meet areas of high de- mand.
Enduring the Drought Some distributors, such as
Web:
www.pcbsmt.cn
Digi-Key, were able to predict this shortage well in advance. The company keeps a close eye on global design activities in the engineering community and not- ed an uptick in the second half of 2019. This, in addition to the high volume of new design cycles and NPIs the company was sup-
porting, triggered its team to ramp up purchasing inventory in early 2020, scheduling orders through the end of 2021, offering suppliers as much visibility as possible into future needs. Digi-Key is in constant con-
tact with suppliers and cus- tomers, has long-term relation-
Digi-Key’s warehouse in Thief River Falls, Minnesota.
ships with key manufacturers and has invested in significant inventory to help customers weather the current capacity crunch. In the meantime, customers
who are able to give better and more accurate visibility into and forecasts of their product needs can help their downstream sup- ply chain partners obtain the necessary product volumes to support their manufacturing. This allows their partners to work more closely with suppliers to plan accordingly. From an engineering per-
spective, the ODMs and OEMs should look to approve multiple suppliers on commodity type
Continued on page 8 Contents SCS PRECISIONCOAT V
Tech-Op-Ed ........................... 4 Tech Watch ........................... 10 People.................................... 12 Business News...................... 14 Business Briefs.................... 15 Management......................... 16 EMS .................................... 18 Electronic Mfg. Prods............ 24 Production............................ 38 Partnering............................. 40 Distribution........................... 42 New Products....................... 58 High-Tech Events.................. 72 Editorial Calendar................. 72 Advertisers Index.................. 74
Special Focus: Components and
Distribution..........................44
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