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What Caused The Shortage Of The Electronic Component Supply Chain?

ShenZhen OSENON Technology Co.,Ltd | Updated: Oct 15, 2018

Since the introduction of Model 3, Tesla has been under tremendous pressure for capacity constraints and has been trying to overcome the difficulties of demand supply. Steve Hughes, managing director of REO UK, points out that the current supply of electronic components faces the same challenges.

In recent years, the demand for electronic components has grown exponentially. Due to the short life cycle of handheld devices, the demand for these products is still high. The number of electronic components used in industrial production of a handheld device is more than ever. The rapid development of the automotive industry and the Internet of Things is two key factors that have driven demand for electronic components far beyond expectations, and manufacturers have found it difficult to keep up with the growth in demand for electronic components.


electric part such as ultrasonic sensor


Like most modern technology equipment, the manufacture of automotive devices requires the use of multilayer ceramic capacitors (MLCCs). The manufacture of a conventional internal combustion engine vehicle requires approximately 3,000 capacitors, but as the vehicle evolves from hardware-driven machines to software-driven Machines, in-vehicle infotainment systems, driver assistance systems, and comfort electronic control systems have increased the demand for MLCCs. Due to the demand for automotive display systems, LED lighting, kinds of sensors such as ultrasonic sensors, and AI characteristics, the market demand for electronic components has expanded. Big. There are predictions that in the near future, the number of MLCCs needed to build a regular car will increase to 22,000.


It is estimated that by 2021, the annual output of electric vehicles will reach 2.4 million, which will increase nearly five times compared with 409,000 in 2014. It is undeniable that this large-scale growth is closely related to the government's newly issued exhaust emission regulations and incentives. From the current situation, the government's environmental protection policy will not slow down.

Similarly, 30 years ago people felt that IoT equipment was nothing but an idea of the sky, but now the growing demand for IoT devices has added to the already scarce market. Related forecasts show that the demand for global IoT devices will grow to 31 billion units in the future, and this alone is enough to worry many manufacturers. Today, electronic components are a necessity in almost every industry, and many manufacturers choose to order electronic components in order to avoid production delays upstream of the industry chain. However, this panic buying is not a desirable long-term solution.


As far as the current situation is concerned, the results predicted by different analysts are not the same. The more uniform statement is that the shortage of electronic component supply will continue until the first half of 2020, so relevant companies should set realistic expectations in advance and update them regularly. Customer data to maintain good customer relationships is Tesla's consistent approach to tight supply, and Tesla is still working hard to increase production and generate new orders.

This is not the first long-term delay in the key components of the industry, and certainly not the last time, because consumer buying behavior and purchasing decisions are difficult to predict. For managers, by implementing relevant strategies to compensate for extended delivery times, they can better manage their operations and effectively cope with the volatility of future delivery times.

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