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Automotive Chip Shortage Continues

April 17, 2023
Sponsored by Win Source



The automotive chip shortage that continues into 2023 began in the throes of the pandemic. Cancelling orders with the semiconductor factories when automotive production lines had to shut down, the automotive manufacturers soon found themselves on the wrong end of supply and demand. Once production resumed due to vaccine availability, automotive manufacturers found themselves at the back of the queue.

Meanwhile, with people spending more time at home than ever before, demand for consumer electronics shot through the roof. To meet demand, and to recoup earlier losses from cancelled orders, semiconductor factories doubled down on chip production for consumer product and Internet of Things (IOT) device makers.

Automotive manufacturers had missed both their opportunity and their advantage. With mainstream automakers taking up to 3-5 years to design, test and validate new chips, factories no longer had the productivity or time available to help them.

Automotive chips are manufactured for superlative reliability under extreme conditions and, as you would expect, the qualification standards are correspondingly high. With a failure rate tolerance of zero parts per million, chips not meeting the criteria are considered obsolete.

With an expected 15-year effective lifespan, operating for extended periods of time under a wide range of extreme temperature conditions, withstanding shock and vibration, automotive chips are built to the most exacting standards. The Automotive Electronics Council has defined three classes of operating range from 0 to 3, with class 1 covering 40ºC to +125ºC and class 2 covering 40ºC to +105ºC. That’s higher than the temperature of boiling water.

Automotive chip factories must therefore be qualified to manufacture to functional safety standard ISO-26262. The standard covers a broad range of eventualities from how the chip is designed to how failures are handled. In a process that usually takes around six months to achieve, a standard semiconductor factory would have to revise its process design suites to accommodate high-temperature device models, thicker interconnects, as well as other processes that enhance reliability.

Win Source has pulled upon its many advantages to deal with the automotive chip shortage. As the largest electronic component store in Asia, it is also the most trusted resource to find parts that are unavailable elsewhere.

Deepening its bonds up and downstream, Win Source actively participates in exhibitions, strengthening its cooperation with industry professionals. The Munich exhibition in Germany is one such example. Interaction demonstrates commitment to continuously reducing customers' supply chain costs and builds trust in the company’s dedication to the field of component distribution. This, in turn, contributes to stable quality and cost control.

As an independent distributor, extensive supply chain resources help customers purchase components in one stop, saving customers time and opening access to cost-effective solutions. In addition to its more than 1 million electronic components inventory, over 3,000 manufacturer’s products are accessible. Furthermore, Win Source can find alternatives with similar appearance and function to reduce procurement costs, avoid expensive redesign costs and provide multi-source options, as well as actively help engineers make design decisions.

In the wake of the pandemic, Win Source is focused on its strategy to further strengthen business continuity, build further flexibility into the supply chain to adapt to geopolitical changes and enhance resilience with features such as its BOM system. Using this digital system customers can effectively surmount obstacles such as shortage of goods and price confusion.

With product business modules including commonly used parts, shortage parts and obsolete out-of-production parts, the BOM digital system helps search and solve problems from the source. Not only can products be sourced on our platform, but a one-stop design, development and procurement service is also provided.

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