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Semiconductor crisis: how to minimize the impact?

· 3 min read
Nicolas Lorenzi

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As you know, in 2021, a global semiconductor crisis occurred as the industry's capacity failed to meet the increasing demand for semiconductors. This leads to a sharp increase in prices and a shortage of semiconductors available on the market.

The crisis is caused by many factors, including the rapid growth of the internet of things (IoT) and the increasing demand for semiconductors and chips in new applications, such as the automotive sector like autonomous vehicles. At the same time, the industry's capacity has not kept pace with the increase in demand, leading to a shortage of semiconductors available on the market.

This leads to a sharp increase in prices as companies and consumers bid up the limited supply of semiconductors. The crisis also leads to a decline in the production of new semiconductors, as companies are unable to meet the high demand for these products.

The COVID-19 pandemic has increased this shortage and could significantly impact the global semiconductor industry. Technology companies are bracing for a potential semiconductor crisis as the coronavirus pandemic shutdown factories and disrupt the global microchips supply.

And in this crisis, some projects may be canceled, some companies may go bankrupt, and some workers may lose their jobs. As long as the chips are not available, projects will be stalled.

The impact of this crisis on some projects could have been minimized.

The impact of this crisis can be minimized by taking different kinds of measures:

  1. Try to use components that will be easy to replace with another reference, even if this component price is higher, see it as insurance.
  2. Use small and simple ship allow you to simplify any change.
  3. Think about his project globally and use an orchestrator allowing to change any part without a problem.

Think globally his project

When you think about a project, you optimize each part according to your needs and try to find the best price. You will think about on-demand understanding and prepare conception and production while reflecting on supply, industry, and the global environment. You will try to have the less component as possible specializing even more the ship you will need. But, in general, you can't anticipate a shortage of a chip or a major crisis.

Thinking about his project globally and separating it into simple nodes with micro-services on it open the way to an adaptable project. Microservices allow you to have a flexible and portable code. This means you can easily adapt your product to industry constraints, and because your nodes are simple, you can adapt them with a minimal cost. Look at Tesla, which excels in manufacturing and producing vehicles in the automotive industry. They manage all parts of their production to change every chip in the manufacturing.

Microservices_Luos

You can easily adapt your product to industry constraints. Like Winky 2.

Act locally and adapt each choice to variables

Your project x Luos: A perfect match

We talked about microservices, and it's what we do at Luos. We develop a new way to connect each part/board of your embedded project using a library for embedded systems. Did you know Docker? Because Luos make the same for embedded systems.

Docker encapsulates applications so that they are loosely coupled and still work together. To be precise, Docker allows your code to be portable and deployable anywhere. It enables you to develop and run your code quickly anywhere in any chip simplifying any replacement. Luos encapsulates embedded applications for electronics to be connected, communicate and work together.

And as we connect every system to avoid frustration during conception, incompatibility, and communication problems between different systems, with Luos, you can adapt your project in real-time.

A component problem? A chip shortage? No problem, you can change your part without redesigning your entire project. Most of your code with Luos still works; you will just have to update your drivers slightly.

Think globally, act locally, our purpose at Luos. Our developers and community help you to conceptualize your project and avoid frustration. We are based on an open-source format that allows us to open our technology and access worldwide knowledge.

Join us in Discord to exchange about projects, technology, and how Luos can work for you.

Few legitimate questions about the semiconductor crisis:

Why is there a shortage of semiconductor chips?

As we see, the main reason for the global semiconductor crisis in 2022 is the mismatch between the increasing demand for semiconductors and the industry's limited capacity to meet that demand.

Is the semiconductor shortage getting better?

There is no clear answer, as the semiconductor industry is very complex. While the short-term situation may be improving, the long-term outlook is still uncertain. We know that this shortage impacts many industries, but it is difficult to say which one is better.

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