March 2020 - How to Avoid Component Shortages
Published on: 19/03/2020
Developments in electric and hybrid vehicles along with IoT have led to a surge in demand for electronic components, discover how to avoid unnecessary component shortages in our latest article
A surge in demand for electronic components in new and evolving markets such as automotive, defence, mobile, industrial and IoT has made the electronics component industry grow significantly.
In the automotive industry, developments in electric and hybrid vehicles have led to a four-fold increase in demand, meanwhile in the consumer sector, a boom in smart home devices is boosting demand for low power and low voltage chip capacitors for products such as smart central heating controls, in addition to the demand of mobile phones which can contain up to 1,000 small chip size capacitors.
This explosion in demand has seen some manufacturers cease production of mature, unprofitable lines, slimming ranges down in favour of those in higher demand. Current shortages focus on parts that have been around for 15 or 20 years as suppliers push towards higher margin products.
There have been many manufacturing changes recently, including discontinuing of more part numbers per year. Overall, the rate of component obsolescence has been increasing over the last 15 years, further exacerbated by government regulations, economic slowdowns and tragic events such as earthquakes and floods that abolished some electronics production.
Today component manufacturers are faced with some tough decisions; adding capacity is expensive but not adding capacity to their ranges can result in them losing sales. It takes a while for capacity to catch up to demand and expansion requires a significant investment in both time and equipment.
The current shortages of electronic components have naturally caused concerns in the market for what may lay ahead. Purchasers are trying to find multiple sources for larger cases and with manufacturers putting customers on allocation, buyers are looking elsewhere. The component shortages are actually boosting sales and new customer recruits because buyers are shopping around for the part quantity they need because their usual supplier most likely will no longer have it in stock.
As the pace of technological advancement quickens, the semiconductor and passive component market is set to implode, however there are still some component manufacturers that can meet niche requirements and the best way to avoid component shortages is to work with a manufacturer that specialises in obsolete semiconductor components.
GD Rectifiers are specialists in obsolete semiconductor components and work hard to find their customers a modern day alternative to obsolete components. GD Rectifiers manufacture a number of flat base conversion kits used to replace obsolete flat based diodes and thyristors, historically used in rotating applications.