The Chip Shortage Leads to Innovation
October 3, 2022 | Malcolm Thompson, NextFlexEstimated reading time: 2 minutes
The chip shortage is by no means over, with estimates expecting it will last into 2023. Some could see it taking even longer, such as Intel CEO Pat Gelsinger, who expects it to see shortages into 2024 due to those now impacting electronics production equipment. But if there’s any bright spot to be had, it’s that a crisis often leads to long-term solutions. In this case, it’s the increase in government funding for semiconductor production in the United States. Once the CHIPS Act proceeds, we can significantly accelerate building semiconductor fabs in the United States and work toward preventing future chip shortages that would put us back into our current situation.
In Every Challenge, There Is Opportunity
The impact of the chip shortage on automotive production and consumer electronics has highlighted the importance that electronics now play in our lives, from lawmakers to everyday consumers. The ongoing disruptions to chip supply and production have rippled through broad parts of medical, industrial, defense, and aerospace. Everstream data now says the average lead time for advanced chips is 52 weeks. This is a problem that affects us all. Thankfully, because of this broad impact, lawmakers and industry members have recognized that the chip shortage goes beyond just silicon foundries.
To solve the overall problem, investment in wafer foundries must be accompanied by funding for advanced packaging of the chips that will come from the new foundries being supported by the CHIPS Act. Without that additional capability, many of these new chips will be sent overseas for packaging, which would defeat the bill’s purpose of boosting domestic chip production overall. Thankfully, this is communicated in the CHIPS Act, and is getting more focus from players across the electronics industry.
While there is concern that the big players in advanced packaging will suck up all the funding, there’s hope that additional complementary and novel approaches such as additive manufacturing will also see meaningful investment. Even a small portion of the overall budget planned for advanced packaging can go a long way in the hands of nimble, innovative companies that, when working together, can raise the bar for everyone in the electronics industry.
We Must Innovate Now, Or We’ll Be Here Again
Collectively, we need to get serious about forming teams, writing proposals, and expanding the electronics space to encompass emerging technologies like additive electronics and flexible hybrid electronics (FHE), because we know other countries are pursuing new ways to create new classes of electronics, and have already made significant headway. Today there is limited semiconductor packaging in the U.S., with early funding intended to go into heterogenous integration methodologies at large companies. The inclusion of investment in additive electronic interconnect packaging would be complementary and could have an impact on a broad set of businesses in the supply chain.
To read this entire article, which appeared in the September 2022 issue of PCB007 Magazine, click here.
Suggested Items
Book Excerpt: The Printed Circuit Assembler’s Guide to... Factory Analytics
04/24/2024 | I-Connect007 Editorial TeamIn our fast-changing, deeply competitive, and margin-tight industry, factory analytics can be the key to unlocking untapped improvements to guarantee a thriving business. On top of that, electronics manufacturers are facing a tremendous burden to do more with less. If you don't already have a copy of this book, what follows is an excerpt from the introduction chapter of 'The Printed Circuit Assembler’s Guide to... Factory Analytics: Unlocking Efficiency Through Data Insights' to whet your appetite.
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Winner of The Science Show Rakett 69 Receives Incap Scholarship
04/24/2024 | IncapThe winner of the Rakett 69 science show, Andri Türkson, who stood out as an electronics enthusiast, received a scholarship from Incap Estonia, along with an internship opportunity in Saaremaa.
Alternative Manufacturing Inc. Awarded QML Requalification to IPC J-STD-001 and IPC-A-610
04/24/2024 | IPCIPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Alternative Manufacturing Inc (AMI).
Boeing's Janene Stinson Earns IPC Excellence in Education Award at IPC APEX EXPO 2024
04/22/2024 | IPCThe IPC Excellence in Education award was presented to Janene Stinson, Boeing, at IPC APEX EXPO 2024 in Anaheim, California, in recognition of her significant contributions to workforce development and leadership.