News You Can Use – 3.11.19 – 3.15.19

As the leading independent distributor of electronic components, Smith tracks open-market activity and conditions as an early indicator of trends and supply chain disruptions. Industry news provides important and time-sensitive information when strategically procuring components, planning for NPIs, or making any critical decisions in the supply chain.

We’ve curated a selection of this week’s industry articles that we feel can help customers gain relevant, useful knowledge and prepare for any supply chain requirements.

Intel CPUs shortage set to worsen

The Intel CPU shortage is set to worsen in the second quarter of 2019 as the demand for Chromebooks, outfitted mostly with Intel’s entry-level processors, enters peak season. Intel’s supply gap was expected to improve after Christmas; however, many now predict that Intel CPUs will see their supply gap shrink by 3% between April and June. Many believe that the shortage in the second quarter will be greater for the Core i3. Intel is expected to have its new 14 nm in production at the start of the third quarter. The Core i5 series (specifically those processors based on Kaby Lake R architecture) and the Atom, Celeron, and Pentium series experienced the most serious shortage at the end of last year. Read More.

Volkswagen plans 22 million electric vehicles in ten years

Volkswagen has increased its projections and plans to launch almost 70 new electric vehicle models in the next ten years. These new models will total roughly 22 million new vehicles on the road globally. Volkswagen’s commitment to achieving CO2 neutrality by 2050 is leading this innovation and has resulted in investments of EUR 30 billion by 2023. While the company has strategic partnerships with battery cell suppliers well in place, Volkswagen is also exploring battery cell manufacturing facilities in Europe. Volkswagen believes that partnerships will reduce the cost of e-mobility and points to its planned cooperation with e.GO Mobile as a specific example. Read More.

PC, Tablet Shipments Forecast to Continue Falling

According to IDC, the number of PC and tablet shipments will continue to decline throughout 2023. Combined shipments of traditional PCs and tablets will total 391.1 million units in 2019, which is down 3.3% compared to 2018. By 2023, combined shipments for these categories are expected to slip to 372.6 million units. Desktop demand will continue to decline as more and more consumers switch to notebooks and detachable tablets. Also known as “hybrid laptops,” the detachable shipment CAGR will increase by 4.6% through 2023. Together, notebooks and detachable tablets are predicted to make up 53% of all personal computing device shipments by 2023. Read More. 

Procurement is going digital, but not overnight

A new report by procurement services provider SAP Ariba found that chief procurement officers across many industries see a sense of urgency to go more fully digital. Nearly two-thirds are leveraging cloud computing to accelerate e-procurement. The company’s chief digital officer, Marcell Vollmer, said that “[d]igital technology is changing how manufacturers at all levels are doing business as supply chain management and the purchasing cycle become even more automated and transparent.” Despite the priority, many companies are facing roadblocks. According to the survey, budget restrictions, internal talent shortage and lack of “know-how,” and analytics and data insights are the main barriers to overcome. Read More.

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