Microcontrollers – the „new gold“? Availability, prices, and politics influencing HVAC&R industry

Electronic components play a significant role in HVAC/R circuits: sensors, controllers, inverters or relays are based on semiconductors, PCBs, passive components and electromechanical parts like housings or connectors.  Most of these components have faced recently severe interruptions in supply chain. Especially semiconductors are often “trouble makers”.
Some reasons are:
-    only few fabs for production of semiconductors worldwide
-    extremely complex manufacturing process and also production equipment
-    volatile ordering behavior of “big players”
-    challenging distribution channels

In the past, the semiconductor market was an “early indicator” for other industries. This means, an economic upturn was indicated in the past often by an increasing demand for semiconductors. If this is still true, there might be some easing of tension in the market in Q2/23. At the moment there is a demand reduction for some semiconductors visible – unfortunately often not the semiconductors needed in HVAC/R but e.g. in graphics boards for PCs etc.
Nevertheless, changing demand structures (increase in the field of electrical cars and charging infrastructure, solar systems and digitization) make a prediction difficult.
Next to semiconductors also passive components face recent challenges: RoHS and REACH are affecting lead in components, especially PTCs. Wires can be affected by the planned PFAS ban.
Solutions: there is no easy solution. It is very important for manufacturers of electronic components to manage their supply chain well and to share information about future demand early.
Therefore is of great importance to receive a regularly adapted and updated forecast from the customer side.