Electronic Component Shortages 2023 & 2024 Trends

Will the electronic component shortages of 2023 continue?

The electronics industry has been dealing with parts shortages for several years now. The specific components that are hard to find at a particular time may vary, but the effects and implications are pervasive. For example, lead times in 2023 for many types of components were virtually unchanged from the year before.

Nevertheless, it is important to evaluate and understand the electronic component shortages of 2023 in order to make realistic predictions about the future availability of parts, especially ones that you commonly utilize. Doing so will help you develop and institute a strategy to mitigate any negative effects on your workflow, production and profitability.

Electronic Component Shortage 2023 Influencers

Understanding the electronic component shortages of 2023 is not possible without knowing what issues and actors most influenced the availability of parts. These are listed below.

Major Influencers of the Electronic Component Shortages in 2023
Influencer	Impact
Excessive demand	Since the COVID-19 pandemic, manufacturers have struggled to ramp up to the increased demand
Limited number of manufacturers	Manufacturing facilities for certain components are limited, especially for special semiconductor parts needed in response to technological advancements in industries like automotive systems.
Limited geographic disbursement of manufacturers	Domestic or near-shore manufacturing is non-existent for some components. This places undue pressure on international commerce systems, like shipping, that are plagued with bottlenecks at some major ports.
Labor shortage	The skills necessary to make some electronic components require experience and expertise and the number of workers meeting these requirements is lagging behind the positions that need to be filled.
Supply chain disruptions	Ineffective logistics and other supply chain disruptions continue to be a major contributor to electronic component shortages in 2023.

As shown above, the root causes for the electronic component shortages of 2023 are much the same as was the case for the previous year. Consequently, component availability lead times have shown little improvement since 2022.

Future of Electronic Component Shortages

The outlook for electronic component shortages for 2024 is mixed. On the one hand, many of the influencers that drove the shortages last year remain. For example, the lack of skilled workers to build electronic parts is expected to persist. However, there is optimism that new technologies and better management strategies will help alleviate some of the stress on the supply chain. Success should also help alleviate the collateral issue of increasing costs for parts.

To help address the supply chain issues, original equipment manufacturers (OEMs) and original design manufacturers (ODMs)are adapting their component acquisition strategies. For example, bulk-buying, which is discouraged by lean practices like just-in-time (JIT) manufacturing, is being implemented to ensure high-volume components are available to meet demand. This practice also helps protect against price increases for essential parts.

Additionally, there is a major thrust to increase the automation of design and manufacturing processes. For design, electronic design automation software tools are being instituted to improve the efficiency of all phases of circuit board design. The board building process is also becoming more automated. Continuing to leverage collaboration between the designer and manufacturer has seen increased usage of digital twins to improve efficiency and optimize quality and reliability.

These efforts focus on the controllable aspects of designing and manufacturing electronics to help offset the unpredictable influencers of electronic component shortages on the overall development and production of electronics boards and systems. Adopting a similar perspective is necessary for PCB designers and engineers to minimize the negative impact of component shortages on their workflow.

Mitigating Electronic Component Shortage Effects

Similar to EMI/EMC concerns, the effects of electronic component shortages cannot be completely eliminated. However, following good guidelines as listed below, will help you mitigate the impact on your design processes.

Guidelines for Mitigating Electronic Component Shortage Effects

Base your component selection decisions on real-time data availability
Avoid using components without supporting documents like datasheets
Ensure that your CAD models are accurate
Only source from trusted, reliable component distributors
Make bulk purchases of essential and common components
Employ PCB layout best practices to optimize design efficiency
Perform simulations, like thermal analysis to validate component capabilities before manufacturing to reduce the number of board spins and components needed for development

Incorporating the guidelines above into your PCB design workflow will help to minimize your susceptibility to the factors that influenced the electronic component shortages in 2023, which will also be impactful in 2024.

If you’re looking for CAD models for common components or important information on how to mitigate the effects of the electronic component shortages of 2023, Ultra Librarian helps by compiling all your sourcing and CAD information in one place.

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