How Can Businesses Survive The Global Electronic Component Shortage In 2022?
An unprecedented set of circumstances, exacerbated to a large degree by the ongoing COVID-19 epidemic, has triggered an inventory and interest emergency for semiconductors and other electronic parts across the overwhelming majority of the industry, which shows no signs of abating anytime soon.
The continuous shortage of electrical parts continues to wreak havoc on businesses all around the country. When combined with additional flow inventory network issues, such as a rising port blockade and a shortage of carriers, the global electronic component shortage has made hardware gadget production substantially more difficult.
1) The current state of the global electronic component shortage
Several important component types are now in short supply.
The pandemic continues to cause disruptions in all aspects of the supply chain, including the component market. Consumer electronics, automotive, healthcare devices, industrial and energy items, among others, have benefited from technological advancements such as 5G, artificial intelligence, and cloud computing, which have continued to enable and drive demand.
A combination of persistent COVID-related industrial problems in East Asia, restricted supply of crucial semiconductor materials, and rising demand for electronic devices has resulted in a semiconductor shortage scarcity.
Prior to the pandemic, businesses in charge of electronic parts had to deal with a steady stream of part defects, rising prices, and lengthening lead times. The pandemic and current production network difficulties emphasize the ability to meet demand, particularly for more standard inactive parts such as memory, multi-facet ceramic capacitors (MLCC), semiconductors, diodes, and even resistors, which were also affected by the pandemic and current production network difficulties. These parts, like semiconductors, may be hard to source.
2) The business effect of sourcing issue
Obtaining challenges for semiconductor parts is always increasing. Substrate and lead outline shortages persist, and wafer starts are expected to be limited well into 2022. Similarly, foundries and manufacturers have increased costs by 5% to 200 percent, depending on the level of innovation. Cost increases and request delays have been commonplace in related products such as PCBs and other electronic components, including ceramic capacitors. Due to the effect of the sourcing issue, ic, semiconductor, and other electronic components overabundances are currently stretching to between four and five months, the longest we’ve seen since approximately 2019. Tight supplies and evaluating increases for these global electronic component shortages are expected to last until 2022.
3) Is the shortfall expected to end in 2022?
Throughout 2021, a scarcity of critical semiconductors shortage has impacted companies all throughout the world, and the worldwide chip shortfall shows no signs of ending.
Experts are unsure how long this global electronic component shortage will last. Many experts think that manufacturers will find some respite in 2022. Worldwide chip scarcity, which began last year, has had a wide-ranging impact. According to Goldman Sachs, the crisis has affected 169 sectors, including autos, computers, medical equipment, and other electronic gadgets. In most sectors and under normal conditions, such gaps are quickly filled as enterprises scale up output and remove bottlenecks. However, the chip sector has its own demand and supply characteristics, which have been exacerbated by the epidemic. As a result, the present global electronic components shortage is expected to last a few more quarters.
4) What can be done about the shortage of electrical components?
This global electronic component shortage, chip shorage, and semiconductor shortage will undoubtedly be resolved in a short time, and it is expected that, with time, there will be no large gap between demand and supply of chips. To avoid future situations like this, major improvements on a global level should be implemented.
Don’t get too worked up over it.
In times of global electronic component shortage, it might be tempting to overstock or over-order, but you should avoid doing so unless you have a plan in place. Rather than fear, supply chain management should be founded on factual facts and predictions.
Maintain stronger supplier relationships.
As the gap closes, businesses that maintain their relationships with suppliers will most likely have the easiest time recovering. Many chips, semiconductors, and other electronic parts suppliers are also giving preferred client programs and comparable drives that supply customers with what they want if they focus on long-haul business relationships.
At Invicta Electronics, we provide all of our customers with a comprehensive chip, semiconductor, and other electronic component procurement service. In our onsite warehouse, our dedicated team monitors surplus stock inventory ready to be allocated to your items. You may also search for more electronic components online by clicking on the product page.
This large inventory holding allows Invicta Electronics to minimize any chances of part deficiencies and eliminate delivery delays, allowing us to fulfill your order as quickly and efficiently as possible. If you’re having trouble finding electronic components, our dedicated purchasing department will use their industry contacts to get any hard-to-find components, or if that’s not possible, they’ll assist you in finding an alternate option.
If you’d like to discuss component sourcing, please visit www.invictaelectronics.com and contact us.