
{"id":22827,"date":"2024-03-25T14:01:31","date_gmt":"2024-03-25T18:01:31","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=22827"},"modified":"2024-03-28T15:35:05","modified_gmt":"2024-03-28T19:35:05","slug":"navigating-supply-disruption-lessons-learned-from-the-passive-components-market","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/electronics-news-trends\/navigating-supply-disruption-lessons-learned-from-the-passive-components-market\/","title":{"rendered":"Navigating Supply Disruption: Lessons Learned From The Passive Components Market"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.20.2&#8243; _module_preset=&#8221;default&#8221; module_alignment=&#8221;center&#8221; custom_padding=&#8221;|||0px||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.20.4&#8243; _module_preset=&#8221;default&#8221; min_height=&#8221;239px&#8221; custom_padding=&#8221;|||1px||&#8221; inline_fonts=&#8221;Arial,Verdana&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div>\n<h2><b><span>Instead of relying on a single source, it\u2019s crucial to build a diverse network of suppliers to ensure supply continuity.<o:p><\/o:p><\/span><\/b><\/h2>\n<\/div>\n<div>\n<p><span>The January earthquake in Japan greatly impacted passive component manufacturer Murata, causing lead times and pricing for fixed inductors to spike. This illuminates a harsh reality: that an event impacting one manufacturer can have a ripple effect across the entire industry.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<h3><b><span>The state of the passive component market<o:p><\/o:p><\/span><\/b><\/h3>\n<\/div>\n<div>\n<p><span>Although active components, like diodes and transistors, tend to get most of the limelight in the electronics industry, passive components, such as resistors, inductors, and capacitors, play an equally important role. Several factors impacting the market for active components, including a shortage of raw materials, capacity constraints, and geopolitical tensions, are also influencing the <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/passive-components-market-to-blossom-in-the-wake-of-5g\/\">passives market<\/a><\/span><span>.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>The consumer electronics sector continues to expand, with phones, tablets, and wearable electronics demanding more and more passive components. The same applies to the ever-growing telecommunications sector, which relies on advanced passives to drive 5G networks, the Internet of Things, and expanding wireless infrastructure. The <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/inside-the-auto-industrys-revolutionary-transformation\/\">electronification<\/a><\/span><span> of the auto industry has also opened a huge growth area in the passives market.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>This is an exciting time for passive manufacturers, who stand to make significant gains if they can innovate and expand to meet the growing demand for passive components. But the more demand surges, the more disruptive it can be when the unexpected strikes.<o:p><\/o:p><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<h3><b><span>Lessons learned from Murata <o:p><\/o:p><\/span><\/b><\/h3>\n<\/div>\n<div>\n<p><span>This vulnerability became especially clear in the aftermath of the magnitude-7.6 Noto earthquake that struck Japan\u2019s Ishikawa prefecture on New Year\u2019s Day. The affected area housed several semiconductor manufacturers, including passive component leader Murata. Many companies experienced delays after the quake as they grappled with injured workers, damaged equipment, and utility outages.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>For instance, the Kaga Toshiba facility was shut down for over a week, and Sanken was forced to delay production for over a month. Murata\u2019s Anamizu factory was among the worst impacted, with a five-month delay (production is slated to resume in May). Now, with prices for Murata\u2019s inductors steadily increasing and lead times stretching up to 46 weeks, OEMs that rely on these products are already feeling the effects.<o:p><\/o:p><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>This highlights the fact that many of the world\u2019s leading electronics manufacturers are located in the same geographical region. Major players in the passive component space include Vishay and Kemet in the US; Tageo in Taiwan; and Murata, TDK, and Kyocera\/AVX in Japan. Note that half of these companies are located in the same country (Japan), and two-thirds are in the same region (Asia).<br \/><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>Semiconductor manufacturing has long been disproportionately distributed across the globe. Recent events like the Russian <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/the-war-in-ukraine-continues-to-impact-the-semiconductor-supply-chain\/\">war in Ukraine<\/a><\/span><span> have underscored the risk of relying on a small number of manufacturers in narrow geographical regions. In response, chipmakers have begun moving some of their factories or building <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/delays-pile-up-in-the-construction-of-planned-fabs\/\">new fabs<\/a><\/span><span> in different areas. But diversification is a two-way street. While manufacturers work to mitigate their vulnerability, OEMs should build diversity in their supply chains to better prepare for market disruptions.<o:p><\/o:p><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<h3><b><span>How to build a diverse supply chain<o:p><\/o:p><\/span><\/b><\/h3>\n<\/div>\n<div>\n<p><span>OEMs learned long ago that building redundancy into every single part simply isn\u2019t feasible. A better approach is to prioritize key components: Determine which products are most vital to keeping production up and running, then find pragmatic ways to <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/3-moves-to-make-now-to-ensure-a-robust-chip-supply-in-2024\/\">ensure a robust supply<\/a><\/span><span> of these must-have parts.<\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>To this end, companies have grown accustomed to paying premium prices, signing long-term purchase agreements, or making hefty <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/need-chips-node-size-determines-semiconductor-availability\/\">prepayments<\/a><\/span><span> to secure the parts they need. These approaches may help ease day-to-day supply chain struggles, but they won\u2019t afford much protection when an event like the Noto earthquake hits the factory. The current passive components market has shown that more diversity is needed.<o:p><\/o:p><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>Finding multiple sources of supply is the best way to build a <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/5-ways-to-build-a-resilient-post-pandemic-supply-chain\/\">resilient supply chain<\/a><\/span><span> that can adapt to sudden disruptions. In the past, maintaining an array of suppliers was often seen as an inefficiency\u2014but with supply chain disruptions on the uptick, it\u2019s now just another part of doing business. Having another source, especially one with a global presence, can be a lifesaver when the unexpected happens. But qualifying a new supplier takes time and resources, so it\u2019s critical to assess your parts list and determine which components warrant this strategy.<o:p><\/o:p><\/span><\/p>\n<p><span><\/span><\/p>\n<\/div>\n<div>\n<p><span>Maintaining multiple suppliers will pay other dividends, too. The wider your network, the more data you can collect and the better you can predict market disruptions. The stronger your relationships with suppliers, the better they\u2019ll understand your needs and be able to find creative ways to keep your production on schedule. It\u2019s well worth taking the time to build a network of trusted suppliers\u2014or to find the right <\/span><span><a href=\"https:\/\/a2globalelectronics.com\/global-sourcing\/get-exactly-what-you-need-through-a-trusted-global-sourcing-partner\/\">global sourcing partner<\/a><\/span><span> that already has a robust network in place. <o:p><\/o:p><\/span><\/p>\n<\/div>\n<h2 style=\"font-weight: 400;\"><\/h2>\n<p><strong>Read more:<\/strong><\/p>\n<p>\u25cf <a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/passive-components-market-to-blossom-in-the-wake-of-5g\/\">Passive Components Market to Blossom in the Wake of 5G<\/a><\/p>\n<p>\u25cf <a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/inside-the-auto-industrys-revolutionary-transformation\/\">Inside the Auto Industry\u2019s Revolutionary Transformation<\/a><\/p>\n<p><span style=\"font-size: 16px;\"><\/span><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/automotive-electronic-components-an-emerging-industry-to-watch\/\" style=\"font-size: 16px;\"><span style=\"color: #6e7288;\">\u25cf <\/span><\/a><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/delays-pile-up-in-the-construction-of-planned-fabs\/\">Delays Pile Up In The Construction Of Planned Fabs<\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/automotive-electronic-components-an-emerging-industry-to-watch\/\" style=\"font-size: 16px;\"><span style=\"color: #6e7288;\"><\/span><\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/automotive-electronic-components-an-emerging-industry-to-watch\/\" style=\"font-size: 16px;\"><span style=\"color: #6e7288;\"><\/span><\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/automotive-electronic-components-an-emerging-industry-to-watch\/\" style=\"font-size: 16px;\"><span style=\"color: #6e7288;\"><\/span><\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/electronics-news-trends\/automotive-electronic-components-an-emerging-industry-to-watch\/\" style=\"font-size: 16px;\"><span style=\"color: #6e7288;\"><\/span><\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/use-these-3-strategies-to-prepare-for-the-next-shortage-market\/\"><\/a><\/p>\n<p><a href=\"https:\/\/a2globalelectronics.com\/shortage-mitigation\/2023-semiconductor-ma-activity-intensifies\/\"><\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Instead of relying on a single source, it\u2019s crucial to build a diverse network of suppliers to ensure supply continuity. The January earthquake in Japan greatly impacted passive component manufacturer Murata, causing lead times and pricing for fixed inductors to spike. This illuminates a harsh reality: that an event impacting one manufacturer can have a [&hellip;]<\/p>\n","protected":false},"author":270,"featured_media":22838,"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":[13,15],"tags":[49,182,45,27,273],"class_list":["post-22827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electronics-news-trends","category-global-sourcing","tag-global-sourcing","tag-global-sourcing-partner","tag-passive-component","tag-passive-components-market","tag-semiconductor-global-supply-and-demand"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Navigating Supply Disruption: Lessons Learned From The Passive Components 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