Taiwan, shaken by its most significant earthquake since 1999, is bracing for potential disruptions across Asia’s semiconductor supply chain according to analysts. Following the powerful 7.2-magnitude tremor near Hualien County’s eastern coast, resulting in tragic loss and numerous injuries, chipmakers such as TSMC and UMC have initiated temporary halts in operations to conduct facility inspections and ensure employee safety. As a key player in the global chip supply chain, Taiwan accommodates major industry players like Taiwan Semiconductor Manufacturing Co (TSMC), a crucial supplier for tech ..read more

The surging interest in artificial intelligence (AI) is driving a significant uptick in the demand for printed circuit boards (PCBs) and related hardware. Manufacturers are facing the challenge of meeting this increased demand while also navigating potential hurdles. Foxconn Chairman Liu Young-way anticipated a favorable outlook for the company in 2024, despite the challenge of chip shortages for AI servers. He also noted the potential impact of global uncertainties on consumer demand for AI technology.  AI server PCBs, vital components for inference and training tasks, are experiencing s ..read more

Latest PMI Report Highlights Resilience in the U.S. Manufacturing Sector The U.S. manufacturing sector appears to be on the verge of recovery, evident in the 2 percent increase of the Purchasing Managers’ Index (PMI) in January, reaching 49.1. This figure is just a few points below the 50.0 threshold, indicating growth. Although the sector has maintained contraction for the 15th consecutive month, there’s a positive note with new orders experiencing a 5.5 percent growth, reaching 52.5 percent. Tim Fiore, the chair of the Institute for Supply Management’s manufacturing survey committee, comment ..read more

Opportunities and Challenges for the Electronic Component Industry in 2024 As we approach the end of 2023, it’s natural to ponder the opportunities and challenges that lie ahead for the electronics industry in 2024. While no one can predict the future with absolute certainty, we can make informed projections based on current trends and expert insights. Anticipated Semiconductor Industry Recovery The semiconductor industry is poised for a strong rebound in 2024. Lead times are stabilizing, and the industry is working through inventory overhangs that have dampened sales. This stabilization will ..read more

Counterfeit electronic components have evolved beyond crude imitations, now encompassing a range of deceptive tactics to pass off as genuine components. A counterfeit is defined as an imitation intended to fraudulently deceive as genuine for profit. In the component market, counterfeits come in various forms: Re-Marked Scrap Product: Non-functional or discarded components re-marked as functional and resold. Re-Marked Second-Hand Components: Used original parts re-marked and repackaged as new. Functional, yet substandard product that has been re-marked and resold as a higher spec product at an ..read more

Electronic Component oversupply eases while demand struggles to recover. In the world of chipmakers, the once pervasive semiconductor supply glut is showing signs of easing, bringing a glimmer of hope to the industry. However, demand from customers outside the AI sector remains subdued due to spending cutbacks amidst a weak global economy, high inflation, and rising interest rates. Major chip markets like smartphones, PCs, and data centers have all experienced contraction this year, contributing to a record operating loss for industry giants Samsung and SK Hynix. Production cuts and the declin ..read more

In the fast-paced world of technology, businesses face a constant challenge in keeping up with the rapid obsolescence of critical components. Semiconductor lifecycles are shrinking, and product discontinuation notices (PDNs) are becoming more frequent, making it crucial for companies to build a reliable supply chain to avoid disruptions.   Managing Rapid Component Obsolescence The key to staying ahead in this dynamic landscape is tracking and anticipating the lifecycles of core semiconductors. Utilizing component databases allows businesses to predict the remaining life of a component and ..read more

Sales growth in the electronic components market has risen dramatically between February and March.  How will this affect the electronics industry long term? According to ECIA’s Electronic Component Sales Trend (ECST) monthly survey, electronic component sales soared upward in March.  This survey assessed month-to-month sales growth, indicating expansion between 26 and 27 points in component and end market measures from February to March.  As shown in the figure below, the overall component average leaped to 158 points in March, compared to 132 points in February.  This mar ..read more

The electronics industry is heavily dependent on minerals like tin, tantalum, tungsten, and gold (3TG).  How will these strengthened conflict minerals regulations impact the electronics industry? January 1st, 2021 marked the introduction of new European legislation on the responsible sourcing of minerals, referred to as the conflict minerals regulations.  Since then, European Union based companies that import minerals have been officially required to ensure due diligence when sourcing these materials.  But what exactly do these conflict mineral regulations imply and what will th ..read more

The past year was difficult for the European electronics supply chain, and subsequent supply chain interruptions are compounding these issues into 2021. As we enter 2021, many individuals in the European electronics supply chain are anxious but optimistic.  The rollout of the vaccine in many countries has created some hope in the supply chain, but this hope is quickly trampled by the following shortages: Global semiconductor shortage Shipping container shortage Raw materials shortage (graphite, lithium, sand, copper, resin, ABF, and glass substrate) Impact of the global semiconductor sh ..read more