Component Sense Blog

Tag: shortages

Samsung Warns of Deepening Chip Shortage

Samsung Warns of Deepening Chip Shortage
Samsung, one of the world's largest makers of chips and consumer electronics, has issued another blunt warning to the electronics market amid the global shortage of semiconductor chips. According to recent reports, Samsung warns of a “serious imbalance” in the semiconductor industry, as shortages continue to cause disruption. The tech giant also hinted that the next Galaxy Note smartphone could be delayed until 2022, in order to streamline production lines. “There’s a serious imbalance in supply and demand of chips in the IT sector globally,” Samsung’s co-Chief Executive Officer, Koh Dong-jin, said during an annual shareholder meeting in Seoul. “Despite...

Global Chip Maker TSMC Threatened by Taiwan Water Crisis

Global Chip Maker TSMC Threatened by Taiwan Water Crisis
Chip manufacturers in Taiwan, including TSMC, are buying water by the truckload for some of their foundries, as the island widens restrictions on water supply amid a drought that could worsen the global chip crunch. Taiwan, one of the world's biggest producers of chips, had promised to help the US, Germany and Japan by bridging the shortage of auto chips, but some auto chip makers have already been forced to reduce production. A key hub in the global technology supply chain for giants such as Apple Inc, Taiwan has started to further reduce water supply for factories in central and...

Global Chip Shortage 'Crisis' Hits Car Manufacturers

Global Chip Shortage 'Crisis' Hits Car Manufacturers
In recent weeks, car manufacturers around the world have been hit by a serious a serious shortage of semiconductors, prompting them to halt output, and putting the brakes on their post-pandemic recovery. The problem stems from the convergence of two key factors; the failure to forecast a sudden rebound in demand towards the end of 2020, coupled with the rise in sales of consumer electronic devices throughout the Covid-19 pandemic, such as tablets, laptops, 5G smartphones and gaming consoles. It also highlights the complexity of car companies’ supply chains, in which a single vehicle can require up to 30,000 parts....

European Chip Shortage Threatens China’s Auto Industry

European Chip Shortage Threatens China’s Auto Industry
According to industry officials, a shortage of European-made chips used in automotive manufacturing threatens to disrupt production in China well into 2021, with chip makers announcing that they may raise prices and expand production in response. From computerised engine control for improved fuel economy, to driver assistance systems such as emergency braking, the auto industry has become increasingly dependent on chips - many of them manufactured in Europe. Due to Covid-19 lockdowns, early 2020 saw a slowdown in automotive production, but the industry has seen a resurgence in demand as consumers look to travel in private vehicles rather than using...

Electronic Component Allocation - Component Sense Back to the Future Series

Electronic Component Allocation - Component Sense Back to the Future Series
Not since the year 2000 have we seen such widespread lead-time growth. What is going on? Back in 2001 when I started in the independent distribution industry I used to tell my clients about the 7 year cycle. This theory was fact based with the data coming from one of the largest franchised, electronic component distributors on the planet. The theory had held strong for over 50 years. The belief was that supply typically outstripped demand for a period of 3-4 years creating a very stable supply situation for the buyer. This would be followed by around 2 years of...

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