The Automotive Industries Component Shortage Crisis: Component Reclaim Eases Burden on Supply Chain

With the chip crisis forecast to hit the production of 3.9m vehicles this year, the automotive industry is to lose a staggering $210 billion in revenue in 2021 alone. 

With the ability to quickly recover valuable components that organisations desperately need while enabling a Circular Economy that positively impacts the environment. Component Reclaim is offering businesses a viable solution out of this dire supply chain crisis.

When will the chip shortage end?

As would be expected, there are several disputes over how long the shortage will last. However, it’s difficult to ignore the forecasts of the chip makers themselves. Unfortunately for the likes of GM and Ford, who have had to shut down production at many of their plants, it’s not looking promising. 

Arm Holdings Chief Executive, Simon Segars, is predicting that the crisis will prevail until at least the end of next year, citing that the “This isn’t a short-term problem with a short-term solution.” Intel CEO, Pat Gelsinger, shares the same bleak outlook, believing that the industry won’t be back on track for another couple of years (Techspot).

With chip lead times pushing 26+ weeks alternative ideas and technologies are beginning to be explored as a means of helping to speed up recovery. 

Alternative ideas & technologies

As discussed in Forbes, Sundar Kamak, Head of Manufacturing Solutions of Ivalua Inc. has called for manufacturers to turn their attention to reusing and recycling chips from older devices and equipment.  

“Each year millions of devices and equipment containing chips are scrapped or thrown away – the UN found there was 53.6 million metric tonnes of e-waste in 2019 globally, of which just 17% was recycled. Not only could this help ease the burden on supply chains, it will also have a positive impact on the economy, and encourage regenerative design to reduce reliance on finite resources”, Kamak said (Forbes).

Component Reclaim may seem like a new phenomenon, but not to us. At Retronix, we have been recovering components from PCBs and returning to a ‘like new’ condition for three decades now. Operating to IPC-9592 STD, our leading technology, including Laser Reballing, delivers the safest recovery and refurbishment service in the industry. 

Our process to recover and refurbish devices, including BGA Chips, not only reduces the amount and cost of scrap going to landfills but also seriously damages the counterfeit industry. With five electronic components on average making up to 60% of the value of an entire assembly, we have seen customers recover £120k worth of chips from just one board.

Retronix is carrying out this service and other bespoke services for hundreds of customers across the world, so what you may think is a unique issue you are facing we might already have a solution for. Our Component Shortage Service encompasses a range of solutions that could solve your sourcing issues quickly and safely: 

Click HERE to learn more or get in touch today via the contact form below. 

CONTACT US FOR MORE INFORMATION