TRYEngineering 2024 - 16

What is the Semiconductor
Supply Chain?
Supply chains are like intricate webs connecting factories, warehouses, trucks, ships, and stores. They ensure that
products-whether it's the latest smartphone, a trendy fashion item, or a beloved toy-reach us efficiently. But what
happens when we disrupt this delicate balance? Let's explore some common causes:
Natural Disasters: Mother Nature can be
fierce. Earthquakes, hurricanes, floods, or
wildfires wreak havoc on roads, factories, and
shipping routes. Imagine a toy factory in a floodhit
area-production stalls and toys can't make
their way to stores.
Transportation Delays: Trucks break down,
ships get stuck in canals, and planes face delays.
These glitches ripple through the supply chain.
Delays in a crucial shipment of silicon chips for
phones impact phone production globally.
Global Demand Surges: Picture the latest
gaming console hitting the market. Everyone
wants it! But factories can only produce so
many at once. When demand outpaces supply,
shortages occur. Suddenly, getting your hands on
that console becomes a quest.
Labor Shortages: Factories need skilled
workers. If people fall sick or can't work due
to health crises (like the recent pandemic),
production slows down. Fewer workers mean
fewer toys, gadgets, and gizmos.
Geopolitical Tensions: Countries trade with
each other, but sometimes politics gets in the
way. Tariffs, trade disputes, or sanctions disrupt
the smooth flow of goods. Imagine a toy made
in Country A, assembled in Country B, and
shipped to Country C-any tension between
these nations affects the process.
Supplier Woes: A foundry relies on raw
materials like silicon, gallium, gold, and even
iridium (which is even rarer than gold!). If a storm
wipes out an iridium mine, the entire industry
suffers. Suddenly, phones, game consoles, and
electronic toys become scarce. The supply chain
is only as strong as its weakest link.
tryengineering.org/semiconductors // semiconductors.ieee.org/

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TRYEngineering 2024

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