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Staying a Step Ahead of the Global Chip Shortage

March 10, 2022
Engineering teams can take steps before and during the development process to ensure they're in the best position to navigate a new era of supply-chain issues.

This article is part ofTechXchange:Chip Shortages and Counterfeits

An out-of-stock component can be the bane of even the best electronic design. As the global chip shortage drags on into its second year, access to electronic components has become a huge challenge for engineers. More challenges are likely ahead as everyone competes over a finite supply of chips.

But engineering teams can take steps before and during the development process to make sure they are in the best position possible to navigate a new era of supply-chain issues, according to industry experts.

他们说,解决组件采购问题的途径意味着与内部和外部采购和制造团队紧密合作。当工程师选择没有采购和采购部门输入的组件和供应商时,他们可以忽略更现实的选择或最终争先恐后地换成零件或急于上车载供应商,这可以增加成本或导致产品延迟。

“Uncertainty and complexity are constants in business today. But global manufacturers have more control of managing their electronics sourcing risk than they may realize,” said Steve Flagg, CEO of Supplyframe, in a 2020report. “Eighty percent of the lifetime risk and cost of a typical hardware product is decided during that product’s initial design. Companies need to examine what’s happening in the design phase because that’s where the disconnect often exists.”

Engineering teams also need to build more flexibility into their designs, industry experts said, making it easy to swap out scarce components with secondary sets of chips without sacrificing product quality.

Pain Points

供应链问题已经对工程师造成了更大的压力,因为公司依靠他们来审查材料清单(BOM)以验证,指定和合格替换零件。电子制造商正在与包括现场经纪人在内的更广泛的供应商合作,试图更快地做出供应问题,工程师被邀请帮助兽医二级供应商。

但芯片短缺影响的不仅仅是where engineers seek parts for their designs. It also impacts how they design products, according to a report by U.S.-based electronics distributor Avnet, citing a survey of more than 500 engineers. As lead times worsen and prices rise, over 60% of engineers said that they are building products based more on the availability of components than their preference.

Most engineers faced with out-of-stock components or those with long lead times are swapping them out with pin-to-pin replacements with different specs (53%) or, if possible, drop-in replacements (49%).

其他工程师(55%)被迫重新设计products around new sets of components.

Co-op Mode

For years, engineers have been encouraged to build products using a “design for manufacturing” (DFM) strategy, designing a product specifically for ease of manufacturing, with the goal of keeping costs low.

But design for manufacturing depends on being able to procure all the necessary components. In an age of widespread chip shortages, industry experts say engineering teams need to take things to the next level. Ted Pawela, chief ecosystem officer at Altium, a leading vendor of electronic design software for circuit boards (PCBs), urged engineers to use more of a “design with manufacturing” approach.

“What it means is that rather than completing a design and only then receiving manufacturing feedback, you get that feedback as your design progresses,” he said, reducing the risk of re-designs.

Altium last month rolled out a software tool called Altimade to assist companies trying to take the next step. Available on its Altium 365 cloud platform and connected to MacroFab’s manufacturing platform, Altimade promises to speed up the prototyping process by uniting design, manufacturing, and sourcing data and experts all in the same dashboard. That opens the door for them to work together on designs.

Using Altimade, customers get access to continuously updated component and manufacturing prices and lead times. The insights help them understand the implications of design decisions and react to unplanned events such as natural disasters. Altium said Altimade also allows its customers to order a PCB without leaving the design environment. Orders are filled by MacroFab’s network of manufacturers.

“Companies that figure out how to leverage design with manufacturing will have a competitive advantage relative to companies designing and manufacturing via status quo methods,” Joey Rodrigues, MacroFab VP of Product, said. “Issues like where and how to secure scare components [are] a distraction from what they do best."

Design Flexibility

But collaboration alone is not going to cut it.

The electronics industry uses a sprawling global supply chain. The components in a semiconductor can travel over 25,000 miles and crisscross 70 international borders before a customer gets the final chip, per a report released by the Global Semiconductor Alliance in 2020. That leaves the supply chain with many potential choke points and vulnerable to unpredictable events, such as a fire or power outage at a fab.

The chip shortage has been complicated by outbreaks of the coronavirus and more contagious variants. Logistics challenges have also added to the uncertainty, leading to logjams of container ships at ports.

“Engineers are going in and having to retrofit designs for customers because they’re stuck,” said Peggy Carrieres, Avnet's global VP of sales enablement and supplier development. “They’re asking us how to get their products unstuck.”

“The next question is what can be done to design something that's more flexible from the get-go," she said in an interview last year.

Carrieres urged engineers to seek additional sources for components such as microcontrollers that can be a challenge to retrofit from another supplier. That way, if one supplier is out of stock of a component, you can pivot to another vendor without having to repeat the full qualification process. This also lessens the risk of encountering counterfeits, which can compound design and quality issues over the long term.

Carrieres said engineers need to take responsibility for building flexibility into new designs. That means designing a product in such a way that they can quickly swap out components that were available at the start of their design cycle but are unavailable or on allocation when they take it to be manufactured. She said companies want to have backup designs ready in case supply chain issues derail their first choice.

Uncertainty Ahead

Ultimately, engineers need to prepare for more uncertainty in the years ahead if they are going to remain in front of the chip shortage. Most industry executives see the path out of the crunch stretching into 2023.

Read more articles inTechXchange:Chip Shortages and Counterfeits

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