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Distribution


Futureproofing your semiconductor component supply


Paul Bentley, managing director of GD Rectifiers, reflects on the current market, offers recommendations and highlights how the custom power specialist can assist with semiconductor component supply


T


oday’s semiconductor market is stable however there is still an enormous amount of semiconductor inventory already with distributors and


customers in the industry. In 2024 demand for semiconductors declined due to several adverse factors including geopolitical tensions resulting from the Russian invasion of Ukraine, armed conflicts in the Middle East and additional sanctions being imposed as a result of the ongoing US/China trade war. With the predicted huge growth sales of electric vehicles (EVs) both distributors and customers alike took inventory of semiconductors in preparation for the big semiconductor component boom. However, EV sales have now slowed which means semiconductor component demand is depleting and lead times have shortened with many outlets experiencing a quieter period. Whilst the inventory is currently congesting the market due to over-ordering, distributors and customers are now trying to rebalance their supply order books. The industry is predicting another EV resurgence in mid 2025 which is set to hike up the demand of semiconductor components. As industries worldwide continue to rely on semiconductors for critical applications, ensuring a stable and futureproof supply chain has never been more vital. With rapid technological advancements, geopolitical uncertainties, and supply chain disruptions, companies must adopt strategic approaches to mitigate risks and secure their semiconductor component supply. Emerging technologies such as AI, IoT and electric vehicles will continue to drive an increased demand for specialised semiconductor components, adding pressure to manufacturers and suppliers. Environmental concerns and government regulations are prompting manufacturers to explore greener production methods and sustainable supply chain solutions. Despite these challenges, opportunities exist for companies that take proactive steps in managing their semiconductor component procurement to ensure supply runs smoothly when demand enhances.


50 February 2025


Recommendations for  supply 1. Diversification of components: Establishing relationships with a distributor that can recommend replacement components from the same manufacturer or an alterative component supply from another OCM if required, enhances supply chain resilience. 2. Strategic inventory management: Maintaining buffer stock of critical components and adopting just-in-time inventory practices can help navigate supply fluctuations. Partner with a distributor that can offer a range of stock agreements including scheduled and call-off orders. 3. Long-term agreements: Negotiating long-term agreements with trusted distributors can secure pricing stability and ensure priority access to key components. 4. Technological forecasting: Staying informed about emerging trends and future semiconductor technologies can help businesses plan procurement strategies more effectively. If in doubt, work closely with a distributor who stays up-to-date with technology developments. 5. Partnering with reliable distributors: Working with established and experienced semiconductor distributors ensures access to


Components in Electronics


authentic, high-quality components from a trusted and reliable source. 6. Monitor market trends: Keeping an eye on industry reports, trade policies, and technological advancements helps in making informed purchasing decisions. 7. Leverage value-added services: Some distributors, like GD Rectifiers, offer customised solutions to help with component sourcing, obsolescence support, and designing in new parts to enhance supply chain efficiency.


As a leading distributor and manufacturer of semiconductor components, GD Rectifiers is committed to helping businesses navigate semiconductor supply chain challenges through innovation and customer-centric solutions. Offering a diverse and robust product portfolio of semiconductor components, including diodes, thyristors, IGBTs, and power modules, catering to industries such as automotive, aerospace, medical, and industrial applications. Recognising that every business has unique requirements, GD Rectifiers provides tailor-made solutions, including: Component sourcing services to suit specific projects, applications and design phases. Custom designed power assemblies and heatsinks to enhance performance


and efficiency in industrial markets.


Obsolete component sourcing and refurbishment service, ensuring product lifecycle continuity and minimal downtime for red tape industries.


GD Rectifiers works closely with manufacturers and customers to maintain robust stock levels, reduce lead times and ensure timely delivery of essential components. The company’s proactive inventory strategies help customers mitigate risks associated with supply chain disruptions. With decades of experience in the semiconductor industry, GD Rectifiers’ team of experts provides impressive technical support, assisting customers in selecting the best components for their applications. This collaborative approach ensures that customers receive not just products, but value-added services tailored to their specific needs.


As semiconductor demand continues to surge and supply chain complexities persist, futureproofing component procurement is essential for business continuity and growth. By adopting strategic sourcing practices, leveraging reliable suppliers, and staying informed about industry trends, companies can safeguard their semiconductor supply.


www.gdrectifiers.co.uk www.cieonline.co.uk


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