The widespread adoption of intelligent driving technologies\u2014such as infotainment systems, navigation, and advanced driver-assistance systems\u2014has led to sustained growth in demand for chips.<\/p>\n
Internet of Things<\/strong><\/p>\n Companies across all industries are incorporating Internet of Things (IoT) sensors and wireless capabilities into a wide range of products, driving up demand for circuit boards.<\/p>\n The Growth of 5G<\/strong><\/p>\n 5G, which began rolling out in 2019, is expected to cover 65% of the global population by 2025. This rapid expansion has driven a surge in demand for electronic components as consumers purchase new devices.<\/p>\n However, when the pandemic broke out, demand for automobiles declined. Demand surged in the healthcare and consumer electronics industries due to increased demand for electronic medical devices and personal electronics. In addition, many factories suspended production in response to the pandemic.<\/p>\n Years later, component manufacturers gradually returned to pre-pandemic production levels. However, increasingly fragile supply chains and escalating international tensions have created problems for companies that manufacture critical electronic products.<\/p>\n Among all parties in the supply chain, manufacturers are the hardest hit by component shortages. When faced with shortages, many manufacturers are unable to produce their products without making modifications, which often requires recertification. This leads to production delays and makes the design process for new products more complex and time-consuming.<\/p>\n Some of the issues that have exacerbated the impact of the shortage include:<\/p>\n Stockpiling Inventory<\/strong>\uff1a<\/p>\n Typically, large companies purchase components in bulk and stockpile them, which artificially inflates demand and exacerbates supply chain issues.<\/p>\n Component Allocation<\/strong>\uff1a<\/p>\n When demand exceeds production capacity, many suppliers spread out their delivery times over a longer period. This leads to uncertain delivery forecasts and supply chain bottlenecks.<\/p>\n Counterfeit Parts<\/strong>\uff1a<\/p>\n As with any other valuable commodity, counterfeit circuit boards pose a risk. This issue primarily affects small manufacturers who use third-party distributors, as these distributors may purchase components from untrustworthy sellers.<\/p>\n Price Increase<\/strong>\uff1a<\/p>\n When prices rise, small companies face the greatest risk. Large manufacturers with substantial capital can afford to pay high premiums to maintain short lead times, making it difficult for small companies to gain a foothold in the market. These price increases are also typically passed on to end users.<\/p>\n According to Goldman Sachs, the chip shortage could persist into 2023. However, it is difficult to reliably predict exactly when it will end.<\/p>\n Developing a plan that takes component shortages into account can help you mitigate risks and strengthen your supply chain. Whether you\u2019re developing a new product or improving an existing design, there are steps you can take.<\/p>\n It is important to consider potential shortages as early as possible to stay on schedule. Whenever possible, work with professionals who have expertise in the semiconductor supply chain. They can help you select the highest-quality and most cost-effective options.<\/p>\n Work closely with design firms to select the most resilient components for the prototyping and production phases. Most design firms have close working relationships with manufacturers and suppliers, so they can help you quickly source components to meet your deadlines.<\/p>\n Next, communicate with all potential manufacturers. It is crucial to contact suppliers directly, as this will give you the most accurate understanding of their lead times.<\/p>\n Whenever possible, choose low-risk components that are unlikely to be affected by shortages. Some components may be available from multiple manufacturers, which helps improve supply chain resilience. An efficient engineering team can help optimize PCB functionality and accelerate time to market.<\/p>\n For example, when a U.S. original equipment manufacturer (OEM) faced a shortage of integrated circuit (IC) components and long lead times for one of its bare boards, it turned to Jingpeng Electronics for design expertise and component procurement know-how to ensure it could produce the affected PCBs in a cost-effective manner while meeting the same performance requirements.<\/p>\n When their current suppliers are unable to help them find cost-effective alternatives, Jingpeng Electronics can work with customers and design partners to redesign PCBs, offering the flexibility to use different components based on availability without the need for future redesigns. Once the design is finalized, Jingpeng Electronics can deliver the PCBs within a few days.<\/p>\n When the customer needed to reorder the boards, they encountered another component issue. However, thanks to the design and flexibility implemented in the previous revision, they were able to use another approved alternative to manufacture the boards and maintain a fast turnaround time.<\/p>\n Jingpeng Electronics helps you optimize your circuit boards and maximize component availability by providing the value and expertise of manufacturing-feasible designs, thereby accelerating your time to market.<\/p>\n Once you have completed the design, you will need to assess the risk of it encountering difficulties in the event of a shortage.<\/p>\n Identify the components that would be most difficult to replace in the event of a shortage, and consider alternative solutions.<\/p>\n For example, your design may include components for which there are no substitutes. While these parts may be easy to source now, if they become unavailable for any reason, you may have no alternative options.<\/p>\n It is very important to find components that use the correct process node for your product. Newer components have higher demand than those typically used in older equipment, which means they are more prone to shortages.<\/p>\n Once you've finalized your design, place an order immediately for mass production. Acting quickly reduces the risk that other companies will buy up all available components before you do.<\/p>\n Optimize the design with potential alternatives or substitutes in mind. This will make it easier to make any necessary changes later in the development process.<\/p>\n Negotiate with manufacturers and suppliers early in the design process to identify as many sources for key components as possible.<\/p>\n Here are some tips for proactive design:<\/p>\n Select Common Components<\/strong>\uff1a<\/p>\n Design your circuit so that you can easily replace high-demand components with ones that have the same or very similar electrical specifications. Although common components may be more expensive than specific ones, incorporating potential alternatives into the initial design can provide some flexibility.<\/p>\n Looking for Alternatives<\/strong>\uff1a<\/p>\n During the design process, identify alternatives for non-critical components. Prepare a list of alternative suppliers to reduce the risk of shortages when entering the production phase.<\/p>\n Add extra space<\/strong>\uff1a<\/p>\n Incorporating extra space into your design allows you to use different PCBs without having to completely scrap the design. You can also arrange the mechanical components strategically to minimize the number of mechanical changes required when you need to modify the electronic components.<\/p>\n You may need to completely redesign your product. Depending on the extent of the changes you make, your production timeline could be delayed by several weeks to several months.<\/p>\n For example, if you need to replace the original PCB with a new one, you may need to source new connectors and make firmware changes, which could take several months. If you choose to wait until the original components become available again, it could take even longer.<\/p>\n Taking proactive steps to reduce the risk of component shortages is critical to lowering production costs and maintaining production schedules. In this process, partnering with a supplier that has material expertise, can optimize your circuit boards, and maximize the value added by componentsPCB Suppliers<\/a>It is necessary to establish strategic partnerships.<\/p>\n![\"Semiconductor](\"https:\/\/www.jingpengpcb.com\/wp-content\/uploads\/2023\/06\/how-component-shortages-affect-electronic-product-design.jpg\")
<\/p>\nHow does the shortage of electronic components affect the company?<\/h2>\n
How can we reduce costs for product engineers during a labor shortage?<\/h2>\n
Planning Shortages<\/h3>\n
![\"Component](\"https:\/\/www.jingpengpcb.com\/wp-content\/uploads\/2023\/06\/component-shortages-1024x576.webp\")
<\/p>\nAssessing the Risks of Key Design Elements<\/h3>\n
Choosing the Right Components<\/h3>\n
Redesign or Redevelopment<\/h2>\n
\nStrengthen Your Supply Chain by Establishing a Strategic Partnership with Jingpeng Electronics<\/h2>\n