{"id":22749,"date":"2024-03-04T16:28:57","date_gmt":"2024-03-04T21:28:57","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=22749"},"modified":"2024-03-25T09:21:03","modified_gmt":"2024-03-25T13:21:03","slug":"3-moves-to-make-now-to-ensure-a-robust-chip-supply-in-2024","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/shortage-mitigation\/3-moves-to-make-now-to-ensure-a-robust-chip-supply-in-2024\/","title":{"rendered":"3 Moves To Make Now To Ensure A Robust Chip Supply In 2024"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”4.16.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” module_alignment=”center” custom_padding=”|||0px||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.4″ _module_preset=”default” min_height=”239px” custom_padding=”|||1px||” inline_fonts=”Arial,Verdana” global_colors_info=”{}”]

For OEMs, building a robust and resilient supply chain has never been more critical.<\/strong><\/h2>\n

The semiconductor industry is at a crossroads, facing unprecedented challenges that demand innovative solutions. Here are three key strategies to help mitigate supply constraint risks:<\/p>\n

1. Establish a Solid Network of Suppliers<\/h3>\n

Supply chains are increasingly interconnected. OEMs can mitigate risks by building a network of resilient suppliers, both globally and in proximity to their operations. This approach provides flexibility and options when shortages arise, reducing the risk of disruption caused by unexpected events in key production hubs.<\/p>\n

Specific strategies for strengthening supply chains are recommended for different industries, from automotive<\/a> to defense and aerospace<\/a>. But all OEMs need to be strategic in how they select and communicate with their suppliers \u2014 especially when sourcing hard-to-find parts<\/a>.<\/p>\n

\u201cNot all OEMs have the resources in place nor the technical expertise to effectively collaborate with semiconductor makers. It is a steep learning curve and onboarding the industry experts that really understand semiconductors and their capabilities and limitations is challenging,\u201d said Dave Schellenberger<\/a>, marketing manager of Microchip\u2019s automotive unit. \u201cTo be most effective, OEMs need to have people that can communicate their needs and requirements in a clear, comprehensive way that will help them make the right strategic decisions.\u201d<\/p>\n

2. Anticipate and Act<\/h3>\n

Recognizing and addressing supply chain disruptions proactively is a central component of building a resilient strategy. Instead of waiting for issues to escalate, OEMs should monitor the industry landscape closely and adapt quickly to changes. Proactivity<\/a> enables companies to stay ahead of potential disruptions and implement timely solutions.<\/p>\n

For example, while the 2022 US CHIPS Act was staged to boost domestic resilience to supply chain disruptions and did indeed impact semiconductor mergers and acquisitions in 2023<\/a>, things aren\u2019t going quite as planned. Chip makers like TSMC, Intel, and Microchip Technology, which were planning on expanding their production capabilities domestically, have run into issues with funding and resources. \u201cNothing has failed yet,\u201d said Emily Kilcrease<\/a>, director of the energy, economics, and security program at a Washington think tank, as reported by the New York Times. \u201cBut we\u2019re going to have to see some progress and those factories actually coming online in the next few years for the program to be considered a success.\u201d<\/p>\n

This success \u2014 or failure \u2014 of the CHIPS Act will strongly impact the global supply chain, particularly when considering China\u2019s anticipated impact. \u201cWestern nations need a plan for when China floods the chip market,\u201d said Chris Miller<\/a>, author of Chip War: The Fight for the World\u2019s Most Critical Technology, in Financial Times. It will be critical for OEMs to stay on top of these and other local and global industry developments to effectively prepare for the future.<\/p>\n

3. Maximize Insights by Employing Advanced Analytics<\/h3>\n

In the fast-paced semiconductor industry, staying informed is paramount. OEMs can leverage advanced analytics by utilizing reliable, up-to-date sources for market forecast information. While comprehensive market reports such as The Global Market for Advanced Semiconductor Packaging 2024-2035<\/a> will provide a truly in-depth view, not everyone has time to read 330 pages of detailed analysis cover-to-cover \u2014 plus, that only provides information from a single, though reliable source.<\/p>\n

Instead, it\u2019s best to commit to a handful of trustworthy sources<\/a> of information that provide highlights of reports<\/a> conducted by multiple third parties, for a broader, more balanced view of the state of the industry. Gartner<\/a>, for example, predicts the semiconductor industry to grow by nearly 17% and worldwide demand for memory chips to climb by 66.3% in 2024. The International Data Corporation<\/a> is even more optimistic, with an annual growth rate projection of 20% for the industry. On the other hand, the World Semiconductor Trade Statistics<\/a> only anticipates a 13% growth and 40% increase in demand for memory chips. Utilizing resources that compare advanced analytics from multiple, reliable sources helps to paint a more accurate picture of what the future may hold.<\/p>\n

What comes next?<\/h2>\n

\u201cIn my opinion, the semiconductor industry is undergoing a tectonic shift, and the ripples of this transformation will be felt far and wide.\u201d \u2014 <\/em>Jorge Gonzalez Henrichsen<\/em><\/a>, Forbes Councils Member and Co-CEO of The Nearshore Company<\/em><\/p>\n

The semiconductor industry will likely emerge stronger and more resilient after the last few years of tumult. But we\u2019re not quite out of the water, yet. Organizations that focus on risk mitigation strategies will be better positioned to weather constraints \u2013 both now and in the future.<\/p>\n

<\/h2>\n

Read more:<\/strong><\/p>\n

\u25cf What\u2019s Driving the Continued Automotive Chip Shortage?<\/a><\/p>\n

\u25cf 4 Tips for Sourcing Hard-to-Find Parts in the Current Global Shortage Market<\/a><\/p>\n

<\/span>\u25cf <\/span><\/a>3 Reasons Why an Independent Distributor is Your Best Electronic Supply Chain Partner<\/a><\/p>\n

<\/span><\/a><\/p>\n

<\/span><\/a><\/p>\n

<\/span><\/a><\/p>\n

<\/a><\/p>\n

<\/a><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"

For OEMs, building a robust and resilient supply chain has never been more critical. The semiconductor industry is at a crossroads, facing unprecedented challenges that demand innovative solutions. Here are three key strategies to help mitigate supply constraint risks: 1. Establish a Solid Network of Suppliers Supply chains are increasingly interconnected. OEMs can mitigate risks […]<\/p>\n","protected":false},"author":270,"featured_media":22754,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[18],"tags":[361,357,50,231],"class_list":["post-22749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shortage-mitigation","tag-chip-supply","tag-chips","tag-shortage-mitigation","tag-shortage-planning"],"yoast_head":"\n3 Moves To Make Now To Ensure A Robust Chip Supply In 2024<\/title>\n<meta name=\"description\" content=\"Learn three key strategies to ensure a robust chip supply in 2024, including establishing a solid network of suppliers, anticipating and acting on disruptions, and maximizing insights through advanced analytics.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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