ALPHARETTA, GA – As demand for electronics and electronics components grows in 2021, it is anticipated supply chain pressure will build, according to ECIA.

ECIA has identified extending lead times for a broad range of electronic components. However, specific component sectors will see greater challenges as the ability of suppliers to increase production is limited by capacity constraints.

Widespread problems across many markets are caused by the insufficient investment in 200mm wafers, according to Joel Huskra. While significant amounts of production have shifted to 300mm wafers and smaller process geometries, major foundries such as TSMC and Samsung still run 200mm fab lines. Several second-tier foundries also run 200mm wafers, such as GlobalFoundries, SMIC, UMC, TowerJazz, and SkyWater.

The economics of chip design and production drive attractive, lower-cost solutions produced at larger process geometries on 200mm wafers. Many IoT and 5G chips are built on 200mm, as are many analog processors, power management devices, MEMS devices, image sensors, RF components, etc., according to Huskra. As demand for these components has grown, 200mm capacity has become constrained. Large foundries like TSMC have been slow to add new 200mm capacity, and utilization was already high at many 200mm fabs before the pandemic hit.

As demand for automotive electronics has rebounded, the shortage of chips produced on 200mm wafers has become much more acute. Automaker difficulties in securing adequate supplies of chips are heightened due to the lower priority they receive from semiconductor manufacturers. Higher volume/higher profit margin orders are positioned at the head of the line in tight supply situations.

Reports in the second week of January 2021 revealed the large impact of shortages of semiconductors. Ford and Nissan have been forced to scale back production in response to semiconductor shortages. Other automakers are also confronting challenges due to chip shortages, including Volkswagen, Fiat Chrysler, GM, and Subaru.

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