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Electronics Development Under Pressure – Ensure Your Ability to Deliver!
The operating environment in the electronics and semiconductor industry is currently becoming noticeably more challenging. We would therefore like to keep you informed of the latest developments at an early stage so that your projects remain manageable,
Rising demand, geopolitical factors, and shortages of materials and manufacturing capacity are currently leading to longer delivery times, limited availability, and rising prices throughout the entire supply chain.
We would therefore like to inform you of these current developments at an early stage so that your projects remain predictable, deliverable, and cost-effective.
Our overview of current market trends
Focus on Storage Solutions
Memory components currently pose the greatest risks to your electronics project. The situation is particularly dire for certain RAM and flash solutions. This applies especially to DDR, LPDDR, and NAND.
Since these components are not 1:1 interchangeable, shortages could lead to costly redesigns and new qualifications. For your products, this means that in the worst-case scenario, projects could come to a standstill, even if 95% of the components on the bill of materials are available. You can read more about this in the latest Ginzinger Techtalk, RAMpocalypse now.
Price surge in semiconductors
Leading semiconductor manufacturers such as NXP, Texas Instruments, and Infineon have announced price increases, particularly for processors, analog, and power management chips. These are key components in virtually all embedded systems, ranging from industrial applications to automation and medical technology.
The reasons for the price increases include rising energy and production costs, sustained high demand driven by AI, data centers, and e-mobility, and the increasing utilization of manufacturing capacity.
Printed circuit boards
Since the Chinese New Year, there have been instances of delivery times doubling, rising material costs, and limited availability of standard and mid-range printed circuit boards. Copper, gold, and copper-clad laminates, in particular, are currently in short supply. A key driver of this is the shift in production capacity toward technologically more sophisticated high-end PCBs, also driven by high demand from the AI sector.
Raw Materials: Helium Shortage
Helium is currently of particular relevance to production delays. Following a production outage in Qatar, the global helium supply has come under pressure. Helium plays a central role in the manufacture of semiconductors. Even though many manufacturers are still operating on existing inventories in the short term, the risk of further price and supply disruptions is increasing.
Higher demand on key air freight routes, rerouting due to current geopolitical conflicts, and declining capacity are making supply chains more vulnerable overall.
What this means for you in practical terms
To avoid technical risks and schedule delays, proactive action is needed now. If critical components are not finalized until late in the design process, the scope for cost-effective alternatives diminishes. Our specific recommendation:
- Early finalization: Finalize critical components (memory, controllers) as early as possible.
- Second-source strategy: Evaluate realistic alternatives as early as the design phase so you can act immediately in the event of shortages.
- Long-term planning: Start thinking about 2027 today. Ideally, place your orders for next year’s requirements now.
We are happy to assist you in assessing the risks associated with your electronics projects and tailoring them to best suit the new market conditions. If you have any questions regarding availability or pricing, your Ginzinger account manager is always available to assist you.