ATLANTA – As demand for electronics and electronic components grows in 2021, it is anticipated supply chain pressure will build, says ECIA. Recent ECIA research and analysis has identified extending lead times for electronic components. However, specific component sectors will see greater challenges as the ability of suppliers to increase production is limited by capacity constraints.

A new explanation for what is causing widespread problems across many markets is the insufficient investment in 200mm wafers, according to the association.

While significant amounts of production have shifted to 300mm wafers and smaller process geometries, major foundries such as TSMC and Samsung still run 200mm fab lines. Several second-tier foundries also run 200mm wafers, such as GlobalFoundries, SMIC, UMC, TowerJazz, and SkyWater.

The economics of chip design and production drive attractive, lower-cost solutions produced at larger process geometries on 200mm wafers, says ECIA. Many IoT and 5G chips are built on 200mm, as are many analog processors, power management devices, MEMS devices, image sensors, RF components, etc. As demand for these components has grown, 200mm capacity has become constrained.

Large Foundries like TSMC have been slow to add new 200mm capacity. Utilization was already high at many 200mm fabs before the pandemic hit. As demand for automotive electronics has rebounded, the shortage of chips produced on 200mm wafers has become much more acute. The typical car requires anywhere from 50 to 150 semiconductors.

Automaker difficulties in securing adequate supplies of chips are heightened due to the lower priority they receive from semiconductor manufacturers. Higher volume/higher profit margin orders are positioned at the head of the line in tight supply situations.

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