The semiconductor crisis is a global crisis that began in 2020 and continues today. It is due to a combination of factors, including the COVID-19 pandemic, the war in Ukraine, and the rising demand for electronic products.
This crisis has a major impact on the electronics industry, particularly on French EMS. EMS are electronic subcontractors that manufacture electronic boards for companies worldwide.
Where Does the Semiconductor Crisis Stand?
The semiconductor crisis seems to be easing, but it is not yet over. According to IC Insights, the semiconductor shortage is expected to continue until 2024.
The demand for semiconductors continues to grow, especially for consumer electronics, electric vehicles, and 5G infrastructure. However, semiconductor supply is also increasing due to manufacturers investing in new production capacities.
Impact of the Semiconductor Crisis on French EMS
The semiconductor crisis has a major impact on French EMS. These companies face longer lead times and higher prices for semiconductors.
French EMS have had to adapt their production to cope with the crisis. They have notably diversified their supply sources and implemented demand management programs.
Some Examples of the Semiconductor Crisis Impact on French EMS
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Longer Lead Times
French EMS often have to wait several months to receive the semiconductors they need. This causes delays in production and delivery of electronic products.
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Higher Prices
Semiconductor prices have increased significantly since the start of the crisis. This impacts the profitability of French EMS.
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Diversification of Supply Sources
French EMS have had to diversify their supply sources to reduce their dependence on Asian manufacturers.
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Demand Management Programs
French EMS have implemented demand management programs to adapt to the volatility of semiconductor supply.
The semiconductor crisis is a major crisis that has a significant impact on the electronics industry. French EMS have had to adapt their production to face this crisis.