Developers and manufacturers are dealing with a major shortage of electronics components. It’s unclear when the supply will catch up to the high demand and as a result many microchips currently have a 52-week lead time. These delays are a major disruption that often results in customer delays, loss of sales and reputation damage. In 2021 the automotive industry alone was forced to reduce production by 4 million resulting in a reduction of $110 billion in sales globally.
When authorized distributors have no stock to supply customers there are limited options available for companies. Product development leads times extend, the launch of new products are delayed and production orders of current models sit in warehouses awaiting lead time updates of long lead time components. Some large companies are able to absorb the sales and cash flow challenges however smaller businesses are often left struggling to survive.
To support customers we provide a Robin Hood service to source components from local resellers and distributors in China that hold long lead time stock of new and refurbished chips. Due to the high demand in the market, purchasing and testing usually occurs within 72 hours of quoting, and chips are shipped via courier, arriving to the customer within 5 working days.
We look forward to supporting more development houses and manufacturers from overcoming this challenge!
Let’s face it, by the time you have read this you have probably come across a number of articles with horror stories of counterfeit semiconductors and reputable advice on avoiding grey market electronics. This is certainly a wise move and something we would recommend, especially if you operate in an industry with controls and regulations forbidding this.
In the case when sourcing specific long lead time chips becomes a critical need for you our team in China are able to manage this. After locating the long lead time or obsolete components we work with international test laboratories that are experts in testing and counterfeit detection. Together with these partners we are able to offer measures; such as automated line testing, x-ray analysis, decapsulation and die analysis, complete engineering analysis and a range of other counterfeit detections services.
While there are still risks associated with purchasing non authorized distributors we are able to work with you to ensure they are minimized and conditions outlined clearly from the beginning.
Let us know if you need any other information about our Electronics Component Sourcing service and how we work with our clients.