A lot of things have changed over the past few years. Global shortages have had a major impact on the way the world’s many supply chains function. It comes as no surprise that electronic components and the electronics industry have needed to re-examine their earlier legacy systems.
The global shortage of semiconductors has been prolonged and rocked by many crises over the last few years. Semiconductor manufacturers such as Intel, Nvidia, and TSMC have been doing their best to boost productivity with needed investments. The combined total investments from TSMC, Samsung, and Intel for future semiconductor fabrication facilities are already upwards of $260 billion by 2026.
Even with continued plans by the Biden Administration to give U.S. domestic semiconductor production a push with the $52 billion in the CHIPS Act, supply chain issues persist.
War and Covid Lockdowns
2022 hasn’t gone the way many experts expected. The Russian invasion of Ukraine was one more disruption to a supply chain already strained from Covid-19 pandemic complications. Half of the global supply of neon gas, a critical ingredient for the lasers that make the chips, is no longer available. Gas prices and economic strains have increased from sanctions against Russia. These rising energy prices have caused a ripple effect through many industries.
Most business sectors rely on some form of transportation or energy to deliver or produce their products. Prices for consumers go up to balance out the profit margins, and products that become scarce can triple in price overnight.
These price increases were seen throughout 2020 to the present day. One such example is when Juniper Networks reported seeing 15% to 200% price hikes across several raw materials needed to create chips. Over-ordering was the result of price hikes which put other companies at risk of running out of supplies and original component manufacturers (OCMs) in danger of facing canceled double orders later.
With supplies of semiconductors at risk of becoming scarce again, there is a high chance for counterfeits to enter supply chains.
Counterfeits Become Larger Threats
This global semiconductor shortage has made excellent business for suspect components entering anyone’s supply chain. The need for chips continues to increase with no signs of slowing. High demand alongside chip scarcity makes it far too easy to make mistakes when threats of production stalls hang overhead.
Counterfeit risk has always been a well-known danger within the electronics industry. As it stands, counterfeits earn these sellers $75 billion a year. When faced with shutdowns and no supplies, many reputable manufacturers are willing to look anywhere for chips or face closing their doors permanently.
Quality, during these strenuous times, is often set aside. It is not done purposefully, that much is certain. In the face of having no chips at all, many product manufacturers took unplanned risks that, in the end, cost them more than having no chips at all. How can you assure quality with no supply, genuine components becoming scarce, and counterfeits continuing to slip into the supply chain?
Turns out, you don’t have to do much.
Quality Assurance Through Crisis
Quality is one of the most important aspects of electronic component distribution. That factor rises in importance the longer shortages persist. While it is easy to buy them from the first seller offering electronic components in stock, such as BotFactory did with AliExpress, the same can be said about finding a reputable electronic component distributor.
What is a reputable electronic component distributor? For starters, this type of distributor puts quality first and foremost by taking the time to gain certification. These certifications are in accordance with uniform standards from a governing body, as in the case of AS6081, with its aerospace standards and supplied requirements. Having a few certifications that all build off each other, for example, ISO:9001 which establishes quality management system requirements can assure further verification of quality and authenticity with the certifications AS9100D and AS9120B.
These certifications require consistent maintenance and audits by professionals to ensure the utmost compliance with the standards set forth by the certifications. AS6081 especially considering its military-strict standards that revolve around the detection, mitigation, control, and identification of counterfeit components. This dedication to risk mitigation and quality assurance is not set aside during shortages.
If anything, these electronic component distributors work harder than ever to keep their partners safe during crises. Shortages are always a possibility, that’s why it is best to do business with a distributor that will consistently strive to update its existing quality management systems.
Reliable, Fast, and Quality Assured That’s Area51 Electronics
Your electronic component distributor needs to practice quality assurance management and control, that much is certain. In times of scarcity and under threat of shutdowns they need to be fast too. Can that be done? Just-in-time delivery with the same quality assurance? Yes, in fact, it can be.
Area51 Electronics is an electronic component distributor that steps up to the plate during global supply chain disruptions. The past few years have been hard, so Area51 Electronics worked harder. That’s why, despite the shortage, we have continued to help our partners meet demand through our collaborative advantage approach. Suspect counterfeit components are a complication on their own even without the world in dire straights. Add a global shortage, suspended operations, and the added expenses of purchasing counterfeit components on top of that.
We are proud to be a reliable and AS6081 certified, among others, electronic component distributor. Your success means just as much to us as it does to you. We’ll handle the hard part and make sure you get what you deserve – quality components you can trust.