Cover story
The new reality of today’s Semiconductor Supply Landscape
As the worst of the semiconductor shortage problems start to recede and as the supply and demand begins a return to balance, Ken Greenwood, Technical Sales Manager, Rochester Electronics, discusses a very important question that must be asked going forward - What are the lasting consequences of the turmoil of the last two years, and how should Customers (OEMs) and Original Component Manufacturers (OCMs), along with their trusted partners, adapt their practices to reduce risks in the new climate?
Supply uncertainty is here to stay The semiconductor manufacturing fl ow is thousands of miles long and highly complex. The processing of raw materials, fabrication, and assembly has principally been concentrated in Asia to minimise costs. The impact of the pandemic, and the resulting effects to production timetables and shipping links, exposed the vulnerability of the supply chain. Political and trade tensions, plus
a reassessment of the existing supply chain risks, have resulted in large-scale restructuring of the semiconductor investment landscape in favour of North America and Europe locations. In the future, these fab investments will eventually need to be equally matched by investments in labour force skills, packaging, and semiconductor materials to secure the supply chains.
08 October 2022
www.electronicsworld.co.uk
relationships with authorised partners who can provide; a risk- free access in times of shortage; a trusted source for long-term needs after obsolescence; and critical intelligence on market trends surrounding fab technologies, packages, and production capacities.
Customers today must reassess their purchasing practices. “Minimising Prices” has been replaced by “Guaranteed Supply” as a purchasing mantra. Safety stocks and multi- sourcing are back in vogue. Modern customers need to plan for supply disruptions and secure
Shorter semiconductor product lives The continuous evolution of semiconductor technology has been a constant throughout the last 50 years. OCM investments and resources are focused on the most profitable newer technologies, whilst resources and costs are cut and reallocated by discontinuing older products. The rising dominance of the networking and communications
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
