Kingtronics - Why is there a global chip shortage?

31 Dec 2021

We have to look at several factors that created this shortage tsunami that blindsided everyone. We have broken them down into the following: supply, demand, unfortunate events, and poor decision-making.

Surge in Demand
When Covid-19 restrictions rolled out worldwide, stay-at-home mandates were the norm to prevent the transmission and spread of the virus. Everyone shifted to work from home setups, businesses went online, and messaging applications were downloaded immediately. Consequently, demand for additional electronic gadgets skyrocketed. People upgraded their laptops, purchased new desktops, more tablets, etc., to meet the requirements of the current situation.

This bottlenecked supply chains, as retailers did not prepare for the sudden increase in demand for new requirements. Add the existing projects in their pipelines, and you have the perfect recipe for a global semiconductor disaster.

Bad Luck
Aside from facing COVID-related challenges, some of the biggest foundries in the world were hit by a series of unfortunate events that disrupted their production process even more.

On March 19, an electric overload burned down 600 square meters of the Renesas plant in Naka, one of the most prominent players in the global chip market. It destroyed 23 machines and rendered other areas in the facility temporarily unfit for use.

The plant was running to total capacity again by June, but the damage has been done.

In Taiwan, the worst drought in recent memory threatened to make the chip shortage even worse. Producing chips require tremendous amounts of water, which the drought is making impossible to do. In Texas, winter storms forced some of the country’s only chip plants to stop production.

Still, there are only a handful of big chip manufacturers globally, making the semiconductor industry more vulnerable.

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Kingtronics International Company was established in 1995 located in Dongguan City of China to handle all sales & marketing for factories located in Chengdu, Sichuan and Zhaoqing, Guangdong, China. In 1990, we established the first factory to produce trimming potentiometer and in 1999 we built up new factory in Zhao Qing, Guangdong. Now with around 850 workers, Kingtronics produce trimming potentiometers, dipped tantalum capacitors, multilayer ceramic capacitors, and diode & bridge rectifier. We sell good quality under our brand Kingtronics, and Kt, King, Kingtronics are our three trademarks. All our products are RoHS compliant, and our bridge rectifier have UL approval. Please visit our Products page, you could please download all our PDF datasheet and find cross reference for our Trimming Potentiometer and capacitors.

Tantalum and Ceramic Capacitors Cross Reference ↓ Download
Diodes & Rectifiers List(PDF: 97KB) ↓ Download
Trimming Potentiometer Cross Reference ↓Download