How a chip shortage is snarlning worldwide semiconductor industry?

One of the ongoing questions these past few months has been why so many tech products have been so hard to buy. Manufacture is still under the impact of COVID-19, coupled with some sudden incidents and predictable factors further aggravating the global supply shortage of semiconductor raw materials. Our supply chain organization is working closely with the supply base to ensure adequate supply and Minew has made timely decisions, delivering competitive adaptability and resilience on products shipment and order at present.

As reported, global supply chains is under huge pressure as COVID-19 creates “Manufacturing Deserts”, causing manufacturing output to take at least 12 months to recover to 2019 levels.

Some regrettable news have also been public:

● Semiconductor fab in Japan ravished by fire for more than three days in October 2020, resulted in completely productionhalt, which will take at least half a year to recover.

● After strikes in November 2020, Franco-Italian chipmaker STMicroelectronics agreed to temporarily cut by up to 50% production in France. Coming with a global shortage of STM micros that is much worse than the average component.

● Owing to the shortage in the wafer foundry link and tight production capacity of sealing test, semiconductor OEM capacity constraints are expected to continue at least until the first half of 2021. Yet the shortage of 8-inch wafers is the most serious problem, and the price of 8-inch wafers also rises accordingly.

Under the influence of all the factors mentioned above, the rising cost of raw materials spells troubles in 2021. The cost of production has shot up for most manufacturers because of higher input costs, particularly raw materials such as steel. Business performance is being put under significant pressure by rising raw material prices and reduced availability.

How is everyone dealing with facing Semiconductor Shortage in 2021? It is recommended to reserve stock properly in case of supply breakage and to keep your business run normally. Obviously, it is the primary and viable solution.

As China has made a quick turnaround since the global lockdown wreaked trade, from which Minew is benefit, enabling us to handle certain amount of orders, resting on a number of inventory and advantageous abilities to procurement and production.

Soon after the outbreak, Minew responded timely and realistically across coordinating needed resources and preparing enough raw materials to meet our customers’ demands. Some proactive customers had already contacted with us to reserve resources. The exertion of installing the full auto SMT line levels up our production capability, empowering faster to delivery while sticking to high quality.

Anyway we recommend unnecessary hoarding should be avoided thriving on actual demand and inventory status for benign economic running.

We’d like to go all out to aid you to get through of this dilemma, before and during you have figured out and set up reaction mechanism for the COVID-19 era and post-pandemic world.