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
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Content: Materials shortage latest setback for global components industry | Sourcengine
Raw Material Shortage Marks Latest Setback for Components Industry
Earlier this month, reports emerged that surging demand for new automobiles has prompted an industry-wide semiconductor production shortage. Since then, the situation has been exacerbated by a shortage of raw materials used in making components. As a consequence, motor vehicle production has become severely disrupted, and component procurement has become more expensive. Because of the shortage's multisector impact, original equipment manufacturers (OEMs) should expect across the board pricing volatility, extended lead times, and stock-outs in the near future. Here’s a closer examination of the raw materials shortfall, the circumstances that caused it, and its expected duration. Not Enough ABF and Glass Substrate to Go Around
Manufacturers will feel the effects of reduced availability for Ajinomoto Build-up Film (ABF) and glass substrates in 2021. Last year, manufacturers ramped up their output of central processing units (CPUs), graphics processing units (GPUs), and computer peripherals to meet consumer demand. Because of the coronavirus pandemic, employees and students needed to upgrade their hardware to work and learn from home. This trend led to significant growth in the personal computer market, but it also caused a shortage in ABF substrate. At one point, orders for the insulation material exceeded the available supply by 20 percent, which generated widespread pricing volatility.