Title: Materials shortage latest setback for global components industry | Sourcengine
Headings: Raw Material Shortage Marks Latest Setback for Components Industry
Raw Material Shortage Marks Latest Setback for Components Industry
Not Enough ABF and Glass Substrate to Go Around
Heavy Auto Sector Demand Prompts Shortages for PCB Materials
COVID-19 Worsens Existing 8-Inch Wafer Shortage
Leading Carmakers Suspend Production Due to Chip Shortages
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Content: Second, foundries could not significantly increase wafer output because they lack the equipment needed to fabricate the older, 8-inch wafer type. Third, Chinese chipmakers began stockpiling silicon to avoid future and retaliatory tariffs issued by Washington and Beijing. Even with wafer foundries working at 99 percent capacity, those three factors introduced disruption to the global component sector. In Q1 2020, COVID-19 reached pandemic proportions and prompted a widespread sequence of regional, government-mandated lockdowns. Those production shutdowns negatively impacted silicon and semiconductor production, which worsened existing supply. For 2021, OEMs should anticipate the wafer crunch to raise analog IC prices by 20 percent. Leading Carmakers Suspend Production Due to Chip Shortages
Heavy demand for electric vehicles (EVs) resulted in constrained availability for some consumer electronic parts. In addition, intense interest in smartphones, video game consoles, and smart TVs created an automotive chip deficit. Now, leading carmakers have been forced to suspend production at their plants. Bloomberg reported that Toyota Motor Group, the world’s second-largest vehicle manufacturer, partially suspended production at its Guangzhou, China factory.