Since 2019, the global industry has been facing a significant shortage of semiconductors. Experts predict that problems in the sector’s supply chain will continue until the end of 2023 and early 2024.
The shortage is caused by the widespread use of chips in a variety of devices and systems. This affects the cost and availability of electronic devices and equipment, and slows down the development of new technologies.
The experience of GlobalLogic’s Ukrainian engineers in this area helps to optimize production, providing more affordable solutions to the market for consumers.
According to research, the chip shortage directly affects 169 industries. The automotive and electronics industries are the most affected, but even the production of bank cards and other devices is facing difficulties due to the lack of semiconductors.
In addition, microchips are used in production lines for a variety of products, even such commonplace items as coffee cups. A shortage in the industry leads to higher prices for consumers or lower quality devices due to the use of cheaper microchips.
How and why did the semiconductor crisis arise?
The root causes of this phenomenon were: the COVID-19 pandemic, supply chain and logistics disruptions, and a 13% increase in global demand for personal computers during the lockdown. The crisis was also affected by the growing demand for video cards driven by the popularity of cryptocurrencies, weather conditions in the production regions that temporarily closed several microchip fabs, and even the full-scale war in Ukraine, which led to a rapid rise in neon prices and complicated logistics.
One of the key challenges in production is the length of time it takes to grow profiled single crystals of semiconductors. For example, the lead time (from placing an order to actually receiving the goods) for the production of single crystals of semiconductors increased from an average of 12.2 weeks to 22.2 in February 2020 due to the COVID-19 pandemic. In 2022, this period increased to 26 weeks.
How Ukrainian engineers influence the global semiconductor industry
One of the key factors in the manufacture of new microchips is post-analysis and quality control, as the reject rate can reach more than 80% at different stages of production. This leads to an increase in the cost of goods and potential problems with timely delivery. Restoring stability in production requires finding solutions, including process optimization.
Ukrainian engineers from GlobalLogic have been working for many years to reduce the percentage of defects in production. The solutions they offer include quality control software and software for scanning chips, both existing and potential. This reduces rework costs and losses due to substandard quality, and therefore directly affects the final cost of devices for consumers, providing more affordable solutions in the market.
“In a world where the shortage of semiconductors threatens technological progress, modernization and optimization of production, along with quality control, are becoming one of the key and most effective solutions, because every defective semiconductor is a step backwards,” says Alexander Khorunzhikevich, Senior Engineering Manager, GlobalLogic.
