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Supply Chain Games: What Have We Learned From the Great Semiconductor Shortage of 2021? (Part 1)

Supply Chain Games: What Have We Learned From the Great Semiconductor Shortage of 2021? (Part 1)

Jason Sachs
Still RelevantIntermediate

So by now I’m sure you’ve heard about the semiconductor shortage of 2021. For a few complicated reasons, demand is greater than supply, and not everybody who wants to buy integrated circuits can do so. Today we’re going to try...


Summary

This blog analyzes the causes and consequences of the 2021 global semiconductor shortage and explains what embedded engineers and product teams can learn from it. Readers will get a practical view of how supply constraints affected IoT and embedded-product development and concrete strategies to reduce risk in future designs and sourcing decisions.

Key Takeaways

  • Identify the root causes of the 2021 shortage, including demand shifts, fab capacity limits, and allocation priorities.
  • Assess BOM risk and prioritize redesigns or substitutions for high-risk components to improve manufacturability.
  • Implement multi-sourcing, second-source qualification, and footprint flexibility to reduce single-vendor dependencies.
  • Adjust forecasting, inventory policies, and lead-time assumptions to better align design timelines with supply realities.
  • Engage suppliers and contract manufacturers early and use contractual and allocation strategies to improve part availability.

Who Should Read This

Embedded hardware and firmware engineers, product managers, and supply-chain or operations engineers working on IoT and embedded products who need actionable guidance to harden designs and sourcing against component shortages.

Still RelevantIntermediate

Topics

IoTFirmware DesignDevOps/CICareer/Industry

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