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The Electronics Supply Chain Is (Still) a Hot Mess

The Electronics Supply Chain Is (Still) a Hot Mess

By Bolaji Ojo

What’s at stake?

The electronics industry’s cycles cannot be controlled but they don’t also have to be as devastating as they have been in the past or even now. The industry is failing the credibility test by the unbridled response to upcycles and downcycles, which often lay the foundation for the future occurrence of problems being corrected. For an industry that makes precision equipment for others, this is a distinct black eye.

The electronics supply chain is in shambles. Again.

The World Semiconductor Trade Statistics (WSTS) projects IC revenues will increase 13 percent this year, reversing the drop from 2023. Look closely, though, and the market reality is disheartening and perplexing.

The story here is nuanced. Supply chain demons, unchained, lurk in the wings. Rather than grapple with its anomalies – top of which is demand-supply disequilibrium – industry executives are looking beyond the recent shortages and sales slowdown to clamber atop one another in a rush to embrace artificial intelligence, the current growth driver.

But what about the forecast inaccuracies, unrealistic orders, capacity utilization challenges, mismatched capex budgets vs. “real” production need that have bedeviled the electronics market for decades? These issues have not disappeared, and no amount of AI-fueled recovery will keep them from wreaking havoc on the industry within another short period of time.

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How Could Software-Defined Vehicles Go Wrong?

How Could Software-Defined Vehicles Go Wrong?

By Junko Yoshida

What’s at stake:
The first order of business in discussing Software-Defined Vehicle is to define it, clearly. What is it? More important, what do carmakers plan to do with SDVs? Too many marketers are abusing the terminology to push their own self-serving agenda.

General Motors last week announced resumption of sales of its Chevrolet Blazer EV, whose software quality issues forced suspension of deliveries in December.

When a carmaker like GM says its fixes are now delivered by software updates, the message to the general public is “Don’t worry. This is no big deal.”

However, GM’s Blazer EV stop-sale was a huge deal.

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Intel CEO Asks Altman $7 Trillion Question

Intel CEO Asks Altman $7 Trillion Question

By Junko Yoshida

What’s at stake:
If Sam Altman is right, we are heading into the world where more content are generated by AI than by humans. We don’t know its implications, neither Altman does.

I had the good fortune to see and listen to Sam Altman, CEO of OpenAI, live at the Intel Foundry event this week.

Was I glad to be there? Yes, because I saw firsthand the emperor with no clothes. More accurately, perhaps a nothingburger without a bun.

The venue for this alleged world leader in AI was a fireside chat with Intel CEO Pat Gelsinger.

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Memo to Auto Chipmakers: AVs' Failure is Your Failure, Too

Memo to Auto Chipmakers: AVs’ Failure is Your Failure, Too

By Bolaji Ojo

What’s at stake?

When autonomous vehicles do not perform as expected, the entire industry, including the semiconductor companies supplying the subsystems and other components, will be negatively impacted. End-users will ask: Why are you teaming up with auto OEMs to put on the roads vehicles that clearly need further technology development and design work?

Cruise and Waymo have one thing in common. Their autonomous vehicles have earned the humiliating disdain of some intended customers.  

If you are a semiconductor supplier whose products have been designed into Cruise’s autonomous vehicle or Waymo’s robotaxi, you’ve got the beginning of a public relations nightmare.

Read More »Memo to Auto Chipmakers: AVs’ Failure is Your Failure, Too
Vegas Falcons Patrol the Sphere

Vegas Falcons Patrol the Sphere

By Junko Yoshida

Lately, when the physical world poses a problem, the first instinct of the Silicon Valley mind is to respond, “Oh, there’s a technology to fix that.”

Throwing more tech at the flaws in technology is a malaise not new, but increasingly prevalent in recent times.

For sure, there are technologies that can solve technology problems. But we often forget that there are effective alternatives that don’t require the services of an EE, or even an electrician.

Or electricity.

I was reminded of this humble truth during the Consumer Electronics Show in Las Vegas earlier this month.

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TSMC: Name Change, Anyone?

TSMC: Name Change Anyone?

By Bolaji Ojo

What’s at stake?

The “Taiwan” in TSMC’s name is a justifiable source of pride to the Taiwanese. In countries where political leaders are saying “foreign” domination of the chip business is not in their national interest, though, even TSMC can’t keep out the irritating whiff of China, which is claiming Taiwan. To satisfy foreign customers, TSMC will have to do more than build fabs overseas. It must become a part of each country’s “local” supply chain and enterprise system. A rebranding that includes a name change will help.

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is entering a new phase in its evolution. Sadly, it begins with the end of the Morris Chang era.

Taiwan was at the heart of the TSMC founder Chang founded in 1987. As the founding generation moves, TSMC of the future must have the globe at its core.

To become a truly international player able to melt into the cultural fabrics of its host communities, TSMC needs a rebranding that comes with a neutral sounding name.

Read More »TSMC: Name Change Anyone?