Front End | Electronic Components Supply Network
reasonable growth forecasts, semiconductor manufacturing capacity has remained restrained with investment taking place on a ‘when need dictates’ basis, often following technical trends or upgrading manufacturing facilities to more advanced process nodes. In the last five years new leading edge semiconductor manufacturing capacity at third party foundries has really only been possible thanks to joint investment with customers in return for guaranteed output.
The Chip Acts in the USA and Europe will have some impact on rebalancing the geographic semiconductor manufacturing capacity away from Asia but financial analysts and semiconductor forecasters are concerned that this commitment by central governments - along with an increased investment by the industry - will almost certainly lead to a period of overcapacity in the short-term and may prove to be an inefficient use of capital.
Concluding thoughts I’m on the record as predicting that availability of proprietary semiconductors will ‘normalise’ at 12-to-16 weeks during
2H’22, with commodity semiconductors normalising by the end of the year. I still believe that this is the likely outcome in a fiercely competitive industry but with the current high levels of geopolitical tension you’ll have to forgive me if I’m a calendar quarter out. In the interim my best advice is to continue to work with your trusted, long-term supply partners. They value your custom and, in order to maintain the ongoing supply relationship, are highly motivated to get the products you need to you on time.
For information
Adam Fletcher is chairman of the Electronic Components Supply Network (ecsn), a business association established in 1970 that today offers support to all organisations with an interest in electronic components throughout their entire lifecycle. He is also chairman of the International Distribution of Electronics Association (IDEA), an association of individual country electronic components associations whose objective is to arrive at and share best industry practice.
“…Promoting Positive
Collaboration Throughout the Electronic Components Supply Network to
Benefit Members and the Economy…”
www.cieonline.co.uk
Components in Electronics
April 2022 11
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
