The demand and supply of Electronic components has been volatile since the first vacuum tube valve was shipped, and that’s not going to change in 2025. Some of the challenges in the recent past have been completely unforeseen, like the supply chain disruption caused by the COVID pandemic: perhaps something unexpected will occur again this year. There are some challenges that can be foreseen. Here they are.
Artificial Intelligence (AI) is moving fast and changing the way we live and work. But AI wouldn’t be possible without the right hardware. AI systems needs GPUs and advanced CPUs to process huge amounts of data quickly and efficiently. (more…)
Electronic components are the building blocks of the current advances in technology. Two of the most significant advances are AI and blockchain. Both these technologies will have an impact on the electronic component supply chain.
Every company that relies on a supply of electronic components has to manage component obsolescence: the inevitable day when the original manufacturer sets a date for end of life, that is, for production to cease. Sometimes the components are still up to date technically. Sometimes there is still an active demand for them. Despite that, the manufacturers decide to stop manufacturing them. Here’s why it happens.
The world supply of electronic components has gone from stable, to critical shortages, to over-stocking, in the space of a few years. COVID triggered the shortages, and the shortages triggered an over-reaction. Many major companies now acknowledge that they are holding too large an inventory of parts, and that this is restricting their ability to increase their earnings. Money that could go on product development, or optimising production, is tied up in components that are sitting, unused, in a warehouse.