Shortages in Electronic Components Brings Change

Read our April industry update about how the automotive and consumer technology industries are adjusting to the electronic component shortage

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Global Electronic Component Shortage Could Last Until Mid 2022.

The global electronic component shortage that is wreaking havoc on supply chains could last until 2022. From Samsung to Ford, availability of the components has slowed. Additionally, prices continue to rise for consumers. As a result of the pandemic, consumer habits have changed, generating a struggle to meet demand, especially for electronic components. 

The market has seen pressure in the automotive industry, a boom in the sale of TV’s and home computers, the launch of new games consoles and 5G technology. These have all contributed to the surge in demand. 

TSMC Announces $100 Billion Expansion Plans Over Next Three Years.

Taiwan Semiconductor Manufacturing Company announces a $100 Billion Expansion over the next three years. This expansion will help to address booming demand for new technologies. TSMC is the largest manufacturer in the semiconductor industry. They are already planning on a record capital expenditure of $28 billion this year.

Despite that extreme growth, there is still a need for greater semiconductor supply. TSMC has promised to work with consumers across industries to overcome this surge in demand.  

Unpredictable Fire at Japan's Renesas Plant Causes 1-Month Halt - Affecting Supply Chain.

An unpredictable fire at Japan’s Renesas Plant has caused a halt in production that will last at least one month. The fire will greatly affect the supply chain. An electrical fault caused a piece of machinery to catch fire, pouring smoke into a sensitive cleanroom. Renesas has about a 30% share of the global electronic component market for the automotive industry. 

This could not have happened at a more unfortunate time, as the industry has been scrambling to respond to the large Texas winter storm that knocked out production at additional suppliers, and the growing need for electronic components supply as a result of consumer demand.

Currently, there is no end in sight to how the industry will respond to consumer requests and the automotive industry’s need for a greater supply in electronic components. The news that TSMC is planning to greatly expand in the coming years is good news for the future, but for now the electronic component industry will be watching and waiting. Velocity is here for all of your needs as you navigate the market. 

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