In the March issue of Electronics Sourcing UK & Ireland, ECIA has written a fascinating article exploring the difference between component lead time versus cycle time. What it highlights in detail is the time it takes to actually manufacture a semiconductor device and how the part’s complexity impacts that timescale.
I hazard a guess that not all electronics purchasing professionals will have an in depth understanding of semiconductor fabrication, packaging and test processes, including the time taken for each step. I certainly don’t. However, having read this article, I now have a lens through which I can appreciate the number of steps involved and the timeframe for each.
Ultimately, none of this really matters provided the distribution channel is well stocked and components are flowing as expected. However, the world doesn’t work that way and economic and technological cycles are always out of synchronisation, resulting in periods of over and under supply.
Having a fundamental appreciation of semiconductor manufacturing times should be all the incentive a purchasing department needs to invest in predicting and communicating demand to their distribution partners as early as possible.
Luckily, every bill-of-materials will be awash with components that are technologically mature, well stocked, stable, available from multiple sources and quick to manufacture if required. The problem is that turning a bill-of-materials into a finished product requires availability of all parts, including that one semiconductor device that takes months to make.
The secret is communicating demand early and letting distribution partners do their magic.