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Semiconductor shortage hits local electronics supplier

From cars to gaming consoles, computers and cell phones, the shortage of semiconductor chips is hitting home.

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THIEF RIVER FALLS, Minn. — Digi-Key in Thief River Falls, Minnesota, employs 4,500 people, working to distribute electronic components like semiconductor chips.

According to Digi-Key's vice president of global supplier management, David Stein, those semiconductor chips make up a large part of their $3 billion business.

"It's approximately half of our revenue," Stein said.

Stein says Digi-Key provides the chips to several different industries, all of which use them in production.

"(They) could be automotive customers, they could be customers that manufacture computers, consumer home goods, medical applications, industrial applications, wireless products," Stein said.

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Many people have likely run into difficulty finding at least one of these types of products lately. Stein says we have been building up to this shortage for some time.

As technology becomes more advanced, more semiconductors are needed in everything from phones to cars and even things such as electric toothbrushes.

The coronavirus pandemic only made things harder.

"(The) majority of the manufacturers were were shut down," Stein said. "Whether they were shut down 100% or they're shut down 50%, their ability to produce product was diminished."

Now we're still playing catch-up, with some supply chains around the world still heavily impacted, or shut down.

The semiconductor shortage also doesn't seem like it will be ending in the near future.

"We're looking for excess product to be produced starting as early as 2022, but still, with the demand that's required out there, I think there's still some tough times ahead of us," Stein said.

Related Topics: TECHNOLOGYTHIEF RIVER FALLS
Ben Morris joined WDAY in June of 2021 as a news reporter. He grew up in southern New Hampshire, before he moved to Fargo. He majored in media communications and minored in marketing at the University of Toledo in Ohio.
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