PCBA Tech - What is the reason for the lack of chips in PCBA?

Liu Deyin, chairman of Taiwan Jitsu Telecom, said in a media interview as chairman of TSIA recently that people are worried about the shortage of global semiconductor chips. Some people said that PCBA manufacturers are only manufactured in Taiwan, but in fact, today's shortage will occur no matter where PCBA factories produce SMT patches. I hope the world will not misunderstand Taiwan, now PCBA factories, There are three main reasons for the shortage of SMT chip:

1. The new crown epidemic (Covid-19) leads to a backlog of supply chain inventory.

2. Uncertainty factors are increasing. The US-China trade war has shifted the proportion of supply chain to market. Other competitors expect that after Huawei loses market share due to sanctions, it will get more market share. These uncertainties lead to repeated orders. Actual production capacity is actually larger than the real market demand.

3. The new crown epidemic will accelerate the digital transformation and change the work and life style.

Speaking about the hot topic of tight mature processes in the PCBA market, Liu Deyin, for example, 28 nanometers now seems to be in short supply, but in fact, global capacity is still larger than demand. He believes that SMt chips are a factor in the long-term increase in demand in the semiconductor industry due to the general trend of AI and 5G. TSMC itself has sufficient time and financial resources to support the increase in demand for such semiconductor wafers. In order to support customers, TSMC will also increase capacity including mature processes, but this is not a structural problem and should be more related to customer management. When uncertainty and market share change, there will be over-ordering and repeated orders. For Typhoon, capacity used to be taken first, but it is not possible to do so. TSMC will try to understand which industry needs the most urgent and which industry may have inventory degrading problems through an overall analysis.

For example, if the shortage of SMT patch chips for automobiles affects the economy and employment, it needs to be supported and solved first. Typhoon is doing these things.

PCBA Related news:

In recent years, global chip shortage has seriously affected many industries such as PC, mobile phone, automobile, and many large PCBA manufacturers have been forced to reduce or even stop production. At present, the lack of core has caused a large increase in related products such as automobiles and graphics cards, among which the price of graphics cards has almost tripled. More importantly, the price hike caused by the lack of core in the PCBA industry continues to spread to more product lines. Recently, Xu Qi, President of realme China, said in an interview after the new product launch that due to the shortage of raw materials such as chips, batteries and Suites upstream of the mobile phone supply chain, mobile phone prices may fluctuate in the second half of this year, and the overall supply and demand relationship in the second half will determine the price trend of the entire mobile phone industry.

It is worth noting that this is not the first PCBA manufacturer to warn outside. Lei Jun also said in an interview on 30 days that not only is there a shortage of mobile phone chips, but all the chips in the world are out of stock. This shortage may last for two years. Consumers may feel that consumer electronics products are becoming increasingly difficult to buy and more expensive.