Semiconductor and chip crisis: 4 steps to prevail
Numerous experts now say that the semiconductor and chip shortage could last longer than expected, severely disrupting the electronics industry in all of its forms. ABC Assembly is here to shine a light on the situation and offer partner support.
More than three-quarters of the global manufacturing capacity of chips and semiconductors is located in South Korea and Taiwan. With external factors negatively influencing these manufacturing areas, top industry experts are now saying that the crisis might last much longer than expected.
A report from Gartner suggests the crisis might last until the 2nd half of 2022, while Forrester’s vice president Glenn O’Donnell states 2023 as another likely date. CEOs of Dell, Cisco, Qualcomm, and Micron have also expressed concerns about the length of the semiconductor shortage and how it can cripple various industries.
Since the end of the “chip crisis” affecting numerous types of goods (from phones to computers and cars) is not yet in sight, the entire electronics manufacturing sector is in flux. The shortage impacts a wide range of elements found in devices that use microcontrollers, touch sensors, CMOS image sensors, power-management chips and much more.
Gartner’s analytical report on the matter advises a 4-step strategy for OEMs and other companies to pull through the crisis:
- Improve supply chain visibility
- Keep an eye on market indicators
- Guaranty a supply with a companion model (and/or additional investments)
- Diversify your supplier base
Since diversifying suppliers is still dependent on the market shortage, numerous companies are now looking at point #3, namely – creating a companion model for chip development or investing into similar efforts.
To quote Gartner: “OEMs… must look to partner with similar entities and approach chip foundries and/or OSAT players as a combined entity to gain some leverage…Preinvesting in a commoditized part of the chip supply chain and/or foundries, could guarantee the company a long-term supply.”
ABC Assembly has a wealth of experience in helping companies develop, test, and manufacture electronics chips of the most complex designs and varieties (as shown by our recent assistance to the FermiLab global physics experiments). While OEMs and other market players are seeking ways to solve their supply shortage and develop alternatives – we are already boosting the capabilities of our partners to succeed in this crisis.
As the CEO of Infineon (Germany’s leading chipmaker) said – the electronics industry is in uncharted territory. ABC Assembly is here to help you navigate these waters and come out ahead.