Allocation 2017: What’s Behind the Component Shortage

Component shortages are not just about increased demand. Any number of factors – production capacity, supply chain disruptions, obsolescence and technology migration – can contribute to product scarcity. For 2017 and 2018, supplier merger and acquisition (M&A) activity can be added to the causation list. Semiconductor and tech mergers reached an all-time high in 2016 and formed…

Semiconductor Sales On Pace For Record Year

The semiconductor industry has every reason to be optimistic for the rest of the year. Global semiconductor sales registered their highest-ever quarterly sales increase during Q3 to $107.9 billion; and optoelectronics, sensors, actuators and discretes (OSD) are on track to set record-high annual revenues in 2017. The Semiconductor Industry Association (SIA) reported global Q3 chip sales…

Why Analysts Are Skeptical About Component Demand

You can’t really blame financial analysts for their skepticism on current component demand. The last time the electronics supply chain took orders at face value the industry was left with $13 billion in semiconductor excess alone. Everyone from component manufacturers through OEMs had to write down or write off millions of dollars’ worth of inventory. At…

Component Shortages to Last ‘Longer Than Expected’

There’s no short-term relief ahead for electronics manufacturers that are scrambling for components. Tight supplies of capacitors and resistors are expected to last into mid-2018—longer than industry experts expected. The dreaded words “allocation” and “double-ordering” are coming up more frequently, meaning OEMs and EMS providers are facing long-term sourcing challenges. Thick- and thin-film chip resistor…

What the EU’s Data Privacy Rule Means for the Supply Chain

Electronics supply chain professionals have more questions than answers when it comes to the European Union’s General Data Protection Regulation (GDPR). The rule, which protects EU citizens from privacy and data breaches, is viewed as a b2c initiative rather than b2b. However, one expert warns that manufacturers and the supply chain should prepare for GDPR…

Sanmina Assesses Benefits of MES, IoT & the Cloud

Manufacturing was one of the first industries to grasp the potential of the Internet of Things (IoT). The ability to wirelessly connect and manage multiple factories and machines provides almost infinite opportunities for cost-savings and efficiency. Global EMS provider Sanmina Corp., which has linked more the 25,000 pieces of manufacturing equipment, is beginning to quantify…