What are semiconductors and why are they important?
Put simply, semiconductors (often known more commonly as microchips) are essential elements of electronic devices, enabling steps forward across countless industries and sectors, including communications and computing. A semiconductor chip is an electric circuit with many components, consisting of transistors and wiring formed on what is known as a semiconductor wafer. An electronic device comprising numerous of these components is called an ‘integrated circuit (IC)’. Semiconductors are used far more than most people realise, and a shortage of chips or a supply chain breakdown can have a huge effect within modern society.
The supply chain and the impact of insufficient production
The semiconductor supply chain is unique in a number of ways; its production and distribution are far more complex than one may expect. There are many steps, from the sourcing of necessary materials and silicon wafer fabrication, to chip and processor assembly and rigorous testing. The final (and arguably most important) element of semiconductor supply chains is the worldwide delivery, as this includes warehousing, distribution and order fulfilment.
Semiconductor delivery is such a critical element due to the intricacy of the industry. Not only is the manufacturing itself financially-intensive, but the final goods are high value and can require specialised handling. Efficient and reliable Time Critical logistics are a must when it comes to supporting each element of the semiconductor supply chain. Any breakdown in said supply chain would cause issues throughout, as well as significant financial implications across the board.
Players within the semiconductor space understand how it can be a fast-paced, dynamic and digitally oriented environment to operate in. Requiring a significant budget (in terms of R&D) together with the classification as a category of manufacturing that is classed as being one of the most capital-intensive industries, long-term investment is crucial. Semiconductor manufacturing, however, is both cyclical and volatile when it comes to demand. As a result, recent years (especially those impacted by the global pandemic) have seen businesses expand capacity, gain access to new markets and update to the most recent technologies.
Why is Time Critical delivery so important?
Due to the ongoing shortage of semiconductor chips, Time Critical delivery is more important than ever. The semiconductor shortage has been aggravated and magnified as a result of the pandemic. Automotive manufacturers and manufacturing fell to an all-time low for the first half of 2020, therefore so did the orders for chips. The market recovered quicker than expected, and the demand for semiconductors did the same. Chip production is still far shy of the demand, so businesses are depending upon Time Critical logistic providers to lessen the lead time from production to delivery. Businesses that rely on these chips to continue operation need a Time Critical semiconductor delivery service that they can count on.
Even before the semiconductor chip shortage, Time Critical delivery was of paramount importance. These chips are a critical component in a number of different industries, especially those in the electronics sector. Semiconductors are required for countless consumer electronics, including mobile phones, laptops, games consoles, microwaves and refrigerators. Businesses relied on Time Critical delivery to keep their supply chains and production lines moving. Lead time can often take over four months, but by employing efficient and reliable Time Critical delivery, transit time can be significantly reduced. This, consequently, allows companies to plan more efficiently and trust in the strength of their supply chain.
Finding the right Time Critical delivery partnership
Additional benefits of partnering with a logistics company that provides Time Critical delivery is that said company can manage your high-value equipment transportation. Semiconductor chips, as previously mentioned, are often a part of high-value goods, as it is not only electronic businesses that rely on them to operate. Partnering with a reliable, reputable logistics provider, you can be sure the chips required for your high-value items’ will be taken care of throughout the entirety of the journey. Many logistic companies offer detailed monitoring, allowing you to check the status of your delivery in real time, at any stage.
Semiconductors supply and demand is a cyclical process that regularly experiences highs and lows. No matter what stage the market is experiencing, partnering with a logistics partner who can provide high-quality Time Critical deliveries is crucial.
Royale International is one such company, who have an unparalleled reputation when it comes to Time Critical services. With over 25+ years’ experience serving a variety of high-intensity industries and businesses, their Time Critical expertise cannot be understated. To ensure your business gets the deliveries you need, when you need them, look no further than Royale International – Time Critical delivery you can trust.
Take a look at our Time Critical services and see how we can help your business prosper here: https://www.royaleinternational.com/services/time-critical-services/