-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueIPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
The Cost of Rework
In this issue, we investigate rework's current state of the art. What are the root causes and how are they resolved? What is the financial impact of rework, and is it possible to eliminate it entirely without sacrificing your yields?
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Digi-Key Drilling Down on Counterfeit Parts
August 15, 2022 | I-Connect007 Editorial TeamEstimated reading time: 2 minutes
The I-Connect007 Editorial Team spoke with Digi-Key senior managers Levy Olson (product management) and Kelsey Lawrence (operational excellence) about parts availability and how to manage the challenges of the ongoing shortages in supply. Levy and Kelsey share some intriguing statistics on counterfeit parts and discuss how Digi-Key ensures their extensive inventory is stocked with authentic parts.
Nolan Johnson: Recently, I took an organized tour of EMS houses in San Jose. At each stop, I would ask, “How’s business going?” And the answer was always, “Great! If we can find the parts.”
On one of the tours there was an area in a warehouse with a bunch of loaded pallets. The tour guide explained that was $2 million worth of parts waiting for the arrival of another $500 worth of parts so they could build the board. I’m sure the numbers were meant metaphorically but still, that’s their reality on the floor.
As a major global distributor for both prototypes and production, Digi-Key undoubtedly has some insight on what’s happening. What are the dynamics at play here?
Levy Olson: We’ve been hearing a lot of just that. There are specific components which have very long lead times that are holding up production. Internally, we jokingly refer to them as the “golden screw.” If you have that part, you can build those products. Semiconductors seem to be one product group affected more than the others. Unfortunately, semiconductor is where it does get harder to find a direct replacement. If it’s a microcontroller, for example, it’s pretty much impossible.
Johnson: We can read, even in the mainstream media, about semiconductors. You hear all the news about Intel and other manufacturers announcing new U.S. semiconductor manufacturing facilities, as well as globally, to create more capacity and resilience. At the same time, the projected demand curve for semiconductors still outpaces the planned build out. Do you see it getting better, Levy?
Olson: I think it’s going to get better, but it might take a little while. We talk about shortages, but in the last two quarters in a row, Digi-Key has received the most product ever. So, it’s not necessarily that the shortages within the market are because the manufacturer isn’t making product, it’s because demand is so high.
What happens to demand in the next six to 12 months will determine what happens to the supply of the products. We’re starting to see pockets and lead times coming down a little bit. Nothing quite substantial, but different technologies have their different challenges. We’re seeing some instances where lead times are getting a little better.
Johnson: So even though production hasn’t ramped up yet, lead times are improving. What’s your sense of why that is?
Olson: Throughout COVID times, there was a lot of talk about factories unable to produce because they were shut down; we aren’t seeing as much of that lately. Now we’re seeing factories operate at a high output level. There’s just such a strong demand.
To read this entire conversation, which appeared in the August 2022 issue of SMT007 Magazine, click here.
Suggested Items
Insulectro’s Technology Village to Feature 35 Powerchats at IPC APEX EXPO
03/25/2024 | InsulectroInsulectro, the largest distributor of materials for use in the manufacture of PCBs and printed electronics, will present its popular and successful 13.5-minute PowerChats™ during this year’s IPC APEX EXPO at the Anaheim Convention Center, April 9-11, 2024.
Standards Development Propels the Industry Forward
03/20/2024 | Teresa Rowe, IPC Senior Director, Assembly and Standards TechnologyStandards development task groups will meet face-to-face at IPC APEX EXPO, April 6–11. The technical discussions provide an opportunity to share knowledge, learn from other subject matter experts, and network with others who have similar technical interests. You may remember the urgent need for coffee and the possibility of snagging a cookie or a granola bar to maintain the necessary energy level for these marathon sessions.
Intel, Biden Admin Announce up to $8.5 Billion in Direct Funding Under the CHIPS Act
03/20/2024 | IntelThe Biden-Harris Administration announced today that Intel and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms (PMT) for up to $8.5 billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act.
Koh Young America Appoints Heriberto Cuevas as Sales Team Leader for Mexico and South America
03/19/2024 | Koh YoungKoh Young, the industry leader in True3D measurement-based inspection solutions, proudly announces the appointment of Heriberto Cuevas as the Sales Team Leader for its Mexico and South America operations.
Devan Iyer, Industry Leader on Chips Packaging Technology, Joins IPC
03/18/2024 | IPCDevan Iyer, Ph.D., one of the semiconductor industry’s leading technology experts, has joined IPC as its chief strategist for advanced packaging. In this newly created role, Dr. Iyer leads IPC's work with leading electronics companies and governments to identify and deliver news solutions to IPC members and the industry.