Semiconductor Shortage Means for Electronic Manufacturing

LE LEVISON ENTERPRISES The History of the Chip Founded in 1987 , Taiwan Semiconductor Manufacturing Co. ( TSMC ) is the largest manufacturer of semiconductor chips with a 54 % share of global production . As the personal computer revolution of the 1980s continued to grow , companies such as Apple and Samsung helped develop and expand production . AGRICULTURE AND FOOD DISTRIBUTION TELECOMMUNICATIONS Chip production takes months . When demand for new technologies increased , manufacturers couldn't keep up . Today , there are hundreds of companies that design computer chips but fewer than two dozen companies globally that manufacture them . 5 FINANCE Types of Product Chips Semiconductors , or product chips , are essential for many industries . They are the brains of all electronic devices , which includes a wide array of reliable products . The major industries currently using product chips are : 12 % of total chips HEALTHCARE AND MEDICAL DEVICES TRANSPORTATION What the Semiconductor Chip Shortage Means for Electronic Manufacturing ... Taiwan , China , and South Korea represent approximately 87 % of the semiconductor production market . Taiwan alone holds 63 % of the market . SAMSUNG EDUCATION 8 % of total chips Electric Vehicles Natural disasters and plant fires began to damage the supply chain . At the same time , demand for chips grew . The Lockdown 2020 2021 2020-2021 Large - scale COVID - 19 outbreaks in Southeast Asia shut down production and decimate the workforce . ³00 / 90 07D 3 - F February 2021 An earthquake in Japan causes a blackout at the Renesas factory , stopping production and damaging the infrastructure of the plant . Nittobo . Natural DISASTERS Complex Circuitry Pre - Pandemic Although it may feel justifiable to blame the pandemic for the current chip shortage , the global chip shortage began before the pandemic . Main Factors INCREASE IN DEMAND product 54 % of ALL global chip production MANUFACTURING Nittobo Asahi KASEI July 2020 October 2020 A fire impacted production A fire broke out at the Asahi for Japanese manufacturer Kasei semiconductor plant in Miyazaki , Japan . FAKE AEROSPACE DIGITAL SERVICES Automotive chips were put on the back burner in favor of communication platforms , video streaming services , and personal devices . The demand for automotive chips began to increase , but the supply was at an all time low . A tsmc Production Plant FIRES Increased Demand July 2020 , October 2020 , March 2021 Three separate fires at Japanese semiconductor plants shut down production for long periods of time . February 2021 A winter storm in TX suspends Top Companies that Buy Semiconductor Chips Samsung , NXP , and Infineon plant operations due to widespread power outages and rolling blackouts . Apple and Samsung purchase and utilize the most chips and continue to increase their chip consumption with growing technology . Other top purchasing companies include Lenovo , Dell Technologies , and Hewlett - Packard Enterprise . effort to : ( 5 ) ENERGY DEFENSE AND GOVERNMENT 87 % 63 % All of these natural disasters have contributed to making the chip shortage as critical as it is today . REMOTE WORK These natural disasters impacted manufacturing and production , created widespread power outages , and caused rolling blackouts . Many plants had to suspend production during the recovery period . The Rise of Counterfeit Country Trade Wars RENESAS March 2021 A fire at the Naka , Japan Renesa plant further impacted chip production . wor your First half of 2021 Drought in Taiwan limited the availability of clean water necessary for production . Taiwan DECREASE IN SUPPLY An increase in demand or decrease in supply can always hurt the supply chain . Both happening simultaneously has resulted in a crisis . China Shut - downs Natural Disasters How Counterfeit Parts Affect the Semiconductor Industry Numerous industries are impacted by the chip shortage , and this means that many be at risk of counterfeit components . With counterfeit critical devices could components , a certain industries . is much more likely to fail , and this can be catastrophic in The chip shortage is , unfortunately , leading to more counterfeit components . Scammers attempt to fool desperate buyers and profit from those who believe they have no other option but to take chances with an unvetted supplier during the shortage . The impact of counterfeit components is severe . This how does not need to be an inevitable side effect . Companies will need to know to become familiar with indicators of counterfeit components and ensure that their products are within the regulations of their industries . the time and By taking 284 Le LOOK AT THE PRODUCT PACKAGING FOLLOW THE SUPPLY CHAIN WITH DOCUMENTATION KNOW INDICATORS OF POORLY MANUFACTURED CHIPS These things can help companies avoid the fallout from counterfeit components . Levison Enterprises is an electronic contract manufacturer based in Northwest Ohio . We handle everything in - house , from engineering and one of the ways we've found that design to prototyping and production . It's best eliminates the risk of counterfeit parts ending up in your final product . LE ENTERPRISES 4470 Moline Martin Road Millbury , OH 43447 ( 419 ) 838-7365 [email protected]