Staying ahead of the electronics component shortage

Staying ahead of the electronics component shortage

Custom ASIC: Staying ahead of the electronics component shortage

A shortage in semiconductor components is causing massive spikes in product delivery lead-times the last years. A 2019 market report of Future Electronics stated lead-times for basic components like capacitors, MOSFETs and diodes up to 18–50 weeks. Last year (2020), Mouser Electronics, reported more than 300,000 products in their system that are tracking six months or more in lead-times. And now, early 2021, major automotive OEMs such as Audi, Ford, Toyota, … need to slow down production lines because the required components cannot be delivered on time.

Demand is outpacing supply

Lead times of +6 months cause problems down a product’s entire supply chain and ultimately result in delayed product deliveries.  And it is not going to change soon, as many new and emerging technologies in automotive (such as ADAS, advanced motor control, full electrification) are using more commercial off-the-shelf parts as before. Automotive companies are now competing with major consumer electronics manufacturers for components. Combine this with the rising number of electronic products and the growing Internet of Things (IoT) industry, and it’s easy to see how demand is outpacing supply.

Key components become obsolete

In the past, when components are in short supply, electronics manufacturers would ramp up fab space, leaving them with unused capacity, when the market catches up. Now, all component manufacturers are already running at full capacity. Many suppliers are trying to move customers to the newer technologies so they can obsolete less profitable lines, by increasing prices on the legacy products but not on the newer technology. “Most of our customers are experiencing that their key components become obsolete or have new product specifications and form factor (size, package) causing a full revision and requalification of their product, on a regular basis”, explains Carolien Martens, Business Development Manager at ICsense. Product manufacturers are looking for ways to stay ahead of this. A custom ASIC (Application Specific IC) is a strategic decision to deal with supply chain issues.

Take control of your supply chain

By designing your own ASIC, fully optimized for your product and exclusively sold to your company only, you can take full control and ownership of your own product supply chain:

  • No risk of having obsolete components anymore, while
  • Reducing your overall product’s Bill-Of-Material and cost, with
  • A guaranteed product delivery life cycle of more than 10 years, and
  • Compliant with all automotive, medical and industrial design, process and package requirements.

Interest to know more?

As a trusted analog, mixed-signal and high-voltage ASIC provider, ICsense is your single source for both ASIC development as production. ASICs at ICsense are exclusively developed and sold to you only to safeguard your competitive advantage and supply.

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