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COMPONENT SHORTAGE: DECEMBER ‘22 UPDATE:

Nearly a year after our last update, we have returned to find a similar situation regarding shortages in the component market. The component shortage remains constant, and the theme has been adapting and innovating as demand remains high and the supply low for chips for consumer electronics.Get more news about Brand New Electronic Component,you can vist our website!

Designs for new products have been shifted as well. So much so, in fact, that engineers and support staff are encouraged to come at designs from a different angle- one that prioritizes component sourcing before problem-solving. This is the new preferred way to circumvent the ongoing supply chain issues.

Higher prices and the difficulty in finding available products both mesh to result in the shift in priority for design staff at various companies. Even more so than in years past, flexibility is encouraged and celebrated in the manufacturing industry.

Also influencing the global chip shortage, the war in Ukraine has impeded the export of neon gas. This, in turn, puts a strain on component manufacturers. The lasers used to cut the minuscule chips require neon gas to perform the task. Back inventory at bigger companies is now a thing of the past, and supply chain shortages remain such a central concern that the turnaround experts hope to see will be mid-2023, if at all.
According to Wired Magazine, demand for semiconductors grew nearly 30% between August 2020 and August 2021, and some companies are seeing a backlog of orders growing well into 2023.

Some major chip manufacturers have announced massive investments to build new and modern chip-manufacturing plants, but that takes years to build and costs billions to accomplish. While some analysts predicted the chip shortage might ease sometime in 2022, those forecasts now appear to be optimistic as international labor shortages, COVID outbreaks, and shipping backlogs have further stressed a market nearing the breaking point. With multiple industries feeling the impacts of the component shortage, some analysts are predicting relief in sight ... just not until 2023 at the earliest.

The just-in-time build-to-order pipeline model that the electronics supply chain has been utilizing for over two decades wasn't built to handle the sudden rise in demand for consumer electronics at the beginning of the pandemic.

Now, fresh rounds of COVID-related shutdowns overseas, mixed with the increased demand for consumer electronics, and an incredible bottleneck in the shipping industry has many worried we may see fewer products on the shelves during this Christmas season.