Shortage FAQs

What causes shortages?

Covid-19

Just as it has with most industries around the world, Covid-19 has played a major part in the disruption that the electronics industry is enduring. The pandemic has caused falls and surges in demand that have impacted production levels and made the market unstable.

The fast growth of new technologies

The pandemic isn’t the only factor that is causing the semiconductor shortage. The fast growth of new technologies means that demand is outstripping supply for universal components such as semiconductors and MLCCs.

US-China Trade War

Further compounding these issues is the ongoing trade war between the US and China. When Huawei was blacklisted in the US, several US-based microchip producers were forced to cease trading with the Chinese tech giants, resulting in financial difficulties for both parties.

How do I prepare my supply chain for shortage issues?

OEMs and CEMs need semiconductors to create their products. Semiconductor-dependent microchips are used in almost every modern electronic device, including cars, computers, smartphones, games consoles, and smart assistants.

The best way to navigate the semiconductor shortage is to work with an independent, data driven, hybrid distributor with real experience in managing component shortages. Being independent, Rebound is uninhibited by the restrictions of traditional franchise agreements, allowing us to add real value by offering an unrestricted approach to component sourcing globally -so giving us the best chance to find the product needed keeping your supply chains moving.

Is the fast growth of new technologies causing the semiconductor shortage?

The fast growth of new technologies means that demand is outstripping supply for universal components such as semiconductors and MLCCs.

The burgeoning smartphone and IoT markets are putting additional strain on already stretched manufacturers of microchips, but there is still demand for older technologies that also use microchips, such as the automotive industry.

As microchip producers choose to focus their limited resources on the technologies that have better profit margins, other industries are left wanting.

Increased production of microchips requires an increased supply of semiconductors, and manufacturers are struggling to keep up with demand.

Will investing in good technology mitigate shortage difficulties?

You will need to ensure that you have the right digital platform in place which connects all parties and is easily accessible – if you are to achieve complete visibility in your supply chain.

This will likely mean investment in new technology, which you will need to choose based on the pain points and visibility goals you have defined, as well as the arrangements which you have made with internal teams and external partners.

Automation technology such as track and trace systems, smart sensors and RFID technology can help to boost efficiency and easily communicate data to all parties.