Chip shortage is survivable!
Efficient responses to the semiconductor supply crisis from the supplier side.
The global chip shortage causes disruptions in the lives of many Hungarian and international companies. The topic may concern our partners in many aspects, so in the article below, we have summarized what efficient responses ProDSP can offer for this complex problem.
Chip shortage is not a new phenomenon; the continuous expansion of the electronic devices market had been subject to component shortage-related hindrances on several occasions over the past decades. A memorable incident, for instance, is how the prices shot up in the memory circuit market after the Fukushima earthquake in 2011, caused by the loss of production capacities.
How did the present situation evolve in the semiconductor market?
The current chip shortage, still ongoing in 2021, has evolved to global scale as a result of the combined effect of many circumstances occurring simultaneously.
Due to the complex effect of the COVID-19 pandemic on the production of chips and the recipient markets, serving continuously increasing needs became difficult. The situation was further aggravated by the trade war among superpowers, intensifying from time to time.
Some sectors are particularly endangered!
The automobile industry is particularly threatened due to the explosive development of electric powertrains, driver assistance and infotainment systems, as these systems require a hitherto unprecedented quantity of electronic components. Chip shortage has spilled over into the everyday life of development companies and those manufacturing in smaller series. Due to depletion of distributors’ stock and daily fluctuations, not only the preproduction of older plans represent a problem, but smooth supply cannot even be relied on in case of introducing freshly designed circuits.
ProDSP’s solutions to supply chain problems
The supply of components has been smooth and predictable right from the start. Like many others, we are not exempt from the negative effects of the current international shortage, unfortunately. As predictability and a quick lead time continue to be the key requirements of our partners, ProDSP has been treating this problem with a strategic approach from the very beginning.
Let’s look at the most important steps our company takes to maintain its level of service and smooth delivery:
- We consider it of key importance that the situation be communicated clearly to the clients, especially those who have not yet met the difficulties of the current situation directly.
- With a flexible attitude, we seek solutions together for the emerging problems, while striving to establish realistic deadlines in our undertakings.
- Upon designing, we prioritise the circuit solutions which, based on our experience, can guarantee the completion of our products, while adhering to the stringent professional aspects.
- We pay distinct attention to production preparation in each case.
- We always reconcile the delivery deadlines of problematic components, or offer compatible substitute types. In extreme cases, we also recommend redesigning the circuit detail in question.
- We have broadened our circle or reliable suppliers, and have established closer cooperation with our subcontractors.
It may be a great help for us if the desired production volume is clarified in the early stage of the project, so the key components can be procured in the design stage, ensuring smooth production of the prototype series.
Although the effect of the chip shortage has undoubtedly affected our company, we have managed, together with our partners, to introduce all of our projects into production in this period as well. Thus, one positive outcome of the present era in addition to the reform of the supply chain is the intensification of cooperations.
Author:
Tamás Szalma, senior hardware designer
