Shortage of Semiconductors-What can we do ?

This is a question I alway think about. When there is a supply gap, it means there is an opportunity for changes eg, considering new suppliers, finding the alternative or substitute parts or updating the designs. When making changes, not all people are willing to change.

In 2021, it is seldom to hear of the shortage of masks and other personal protective equipment(PPE). The price of PPE has been down rapidly as it is over supplied now. Unfortunately, the supply of Semiconductors is still very tight. A chip shortage that started in a surge in demand for personal computers and other electronics for work or school from home during the pandemic now threatens car production around the world. Semiconductors are in short supply because of big demand for electronics, shifting business models. Chips are likely to remain in short supply in coming months as demand remains higher than ever.

The ordering lead time of some chip sets increased from 3 months to 1 year now. The capacity can not be expanded quickly. What we could do is to avoid using the same components that the big players like Apple and Samsung are using. When the engineer designs new products, this is the 1st thing to do on the checklist. The next is developing the 2nd source of each item and supply. The 3rd on the checklist is to decide the buffer quantity. It sounds easy, but there are many obstacles for implementation and it involves a lot of collaboration with different stakeholders with different interests. There are many challenges to make the changes. In the long term, the company would benefit from it.