Top 3 tips to digitize your supply chain
?? Hello AIRENCers !!!!
Check your six !
Here is the 6th newsletter!
Things are moving fast in the electronic components market, and a lot has happened since last time. ??
We have curated the most interesting news that we are sure will be of interest for you.
Here is the summary ??
?? Electronic Components Market:
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?? Supply Chain:
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?? Sustainability:
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Let’s begin!
Is the global chip shortage causing more semiconductor counterfeits/frauds? ??
Credit: TechWire Asia
Topic: Electronic Components Market
What is it about?
Shortages of electronic components have been exacerbating the market for 2 years now. And as if that wasn't enough, some?opportunists are taking advantage of the situation?to rip off desperate buyers (fraud or counterfeiting).
According to ERAI Inc, the world’s leader in counterfeit electronics databases, 2021 saw a record wire fraud cases reported (101). They also report that?counterfeit problems decreased since 2019, from 963 cases to 504 in 2021.
Our point of view
Counterfeiters obviously take advantage of the situation and the pressure of shortages to sell their products. And as the article says, these issues usually affect smaller companies.
?But, the numbers put forward by ERAI Inc. are based on cases reported by companies that have suffered these frauds. How many of them have experienced it without reporting it? Today, it is an estimated?$7 billion worth of counterfeit?components that are on the market. This also includes the grey market.
What Experts Say About 2022 for Electronic Component Shortages? ???
Credit: AIRENC
Topic: Electronic Components Market
What is it about?
While some experts announced that some industries will recover by the end of 2022 (consumer tech). Another part of them consider that shortages will last until 2023 (automotive).
On our side, we questioned you on?LinkedIn ?about your expectations on the electronic components market.?92% thought the market will not downturn?by the end of the year. However, many of you have parts to sell. And big players too (Samsung has the highest stock value, estimated at $4.4 billion).
We think that?most of the components are not an issue anymore?(Diode, passive components, mosfet…). But some others (FPGAs and microcontrollers) are still under pressure. And without a strategic component like that, there is no chance to deliver the PCBA.
That is why we believe that the?interconnection between OEMs and EMS will be a game changer. Big players with high inventory could sell it to other players in need.
It’s the best and worst of times for semiconductor supply chains ??
Credit:?QUARTZ
Topic: Supply Chain
What is it about?
The situation in the electronic components industry is very confusing. Production is increasing worldwide (TSMC has increased its investment in new factories and equipment to $44 billion by 2022). While some?Korean chipmakers are sitting on a rapidly growing inventory?of unsold chips.
On the other hand, manufacturers such as Micron Technologies find themselves with a glut of chips used in smartphones and computers. While at the same time,?automakers complain that they can't find enough chips?to run their assembly lines.
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Our point of view
The gap between supply and demand is widening.?Big players are building up a lot of inventory?but consumer demand is declining due to inflation. Other OEMs and EMS find themselves without components (automotive) and struggle to maintain their production.
If we interconnect these two situations, the?excesses of some can make up for the shortages of others. Otherwise, OEMs and EMS with a lot of stock will suddenly stop their purchase orders to consume their stock.
Which will generates a?bullwhip effect… again.
Top 3?? tips to digitize your supply chain
Credit:?AIRENC
Topic: Supply Chain
What is it about?
The point is simple. There is a?lack of digitalization within the electronics supply chain. Many OEMs and EMS rely on old data tracking methods to make critical decisions. These methods don't provide them the visibility they should have into their supply chain.
But digitizing their supply chain means challenging long-standing processes. And modifying their habits. Like the image of the?man who pulls a square-wheeled cart and ignores the other round-wheeled one. It also means multiplying new tools and processes.
We've identified?3 tips to bring resilience to your supply chain?by digitizing it. In addition, these 3 tips are combined in a unique platform.?
Visualizing Our Addiction to Electronics ??
Credit:?Electronics Hub
Topic: Sustainability
What is it about?
More than?53 million metric tons of e-waste?were produced in 2019. This amount is so huge that it probably doesn't speak to you. As an example, you can see on the picture below what it stands for next to the Empire State Building.?
The article allows us to visualize what our waste represents and will represent in 2030. And this is impressive.?
They also bring to light?which countries produce the most e-waste?and which ones have laws in place to address this waste.?
Our point of view
Less than 20% of the world's?e-waste was properly collected and recycled, which not enough. In terms of electronic components, it is estimated at?$5 billion, the amount of components discarded per year.?
Most countries in the world have a lack of laws to regulate waste, and some have even banned the right to repair electronic devices (Mexico). These countries need to implement a?circular economy?to ensure the reuse and recycling of our electronic waste.?
How?Closing the Loop?and?Vodafone?are tackling e-waste? ??
Credit:?EU-Startups
Topic: Sustainability
What is it about?
Tackling e-waste becomes crucial for the environment. One of the best solutions is through?collaboration and circular economy. Here is an example of collaboration between a startup and a multinational.?
Vodafone Germany wants to make its phones waste-neutral. As a result, for each mobile sold, Closing The Loop will?collect a discarded phone in countries without recycling structures.?
Our point of view
This is an excellent example of collaboration between startup and multinational to set up a circular economy. This is a case that resonates with us, because it is also what we want to?implement to the electronic components supply chain.?
By connecting OEMs and EMS, they will be able to buy and sell components to each other instead of wasting them.?
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