Factors Behind the Electronic Component Shortage

Factors Behind the Electronic Component Shortage

The current electronic component shortage  is expected to last through the end of 2018. Many factors can cause a shortage aside from a demand surge, including supply chain disruptions, obsolescence, mergers and acquisitions, and production capacity.

However, the recent demand surge causing the electronic component shortage has become under greater strain due to the IoT explosion and growth in the industrial, mobile, and automotive markets. The IoT is a framework of connectivity to share data and information between an array of devices. This is not a new phenomenon, but an increasing number of devices are getting connected and becoming smarter. It is said that there are more than $31 billion connected IoT devices in 2018 across many different verticals.

Furthermore, new business models, such as 5G connectivity, security, wireless technology, and mass data collection have all developed as a result of the IoT explosion as devices are becoming more advanced and requiring more power.

The shortage phenomenon is going to continue throughout 2018, and is expected to grow due to the ever-increasing connected IoT devices. This is putting a constant strain on the electronic component industry and OEMs globally.

With 40 years in the industry, Advanced MP Technology has the experience and resources in place to handle all requirements, including those facing shortage or obsolescence. With 26 global locations and three full-service global logistics centers in America, Asia and Europe, we are able to provide excellent customer service and deliver the highest quality product on time, every time.