When parts disappear: Why component unavailability is rising

Over the last few months, a string of distinct but interlocked events has pushed component availability into a much riskier state. Trade actions and tariff debates are altering landed costs and buying behavior. A fire at an NF₃ process gas plant in Japan threatens a key consumable for wafer fabrication. An industry supplier has entered Chapter 11 reorganization. AI adoption has led leading memory manufacturers to accelerate the phase-out of legacy DDR4 lines.  

Taken together, these developments create more frequent and deeper pinch points for OEMs, CMs, and EMS providers, especially on mature-node parts and specialty process inputs.

The growing risks of component unavailability

Disruptions in the chip sector often compound as their effects trickle through the supply chain. For many OEMs and EMS providers, this translates to longer lead times, rising prices, or no stock at all.  

Several coalescing factors influencing component availability in today’s market carry significant consequences for all buyers. Those in high-reliability industries face even higher stakes, with recertification delays potentially costing millions or derailing entire product timelines. Below are four risks that have procurement and engineering teams on high alert.  

1. Tariffs and trade policy are altering commercial behavior

The reconfiguration of U.S. industrial policy under the Trump administration’s America First agenda has led to a surge of new semiconductor tariffs. Unpredictable costs and changes to CHIPS Act funding priorities have also muddied the water.  

Recent tariff proposals have already triggered early signs of panic buying and regional inventory hoarding, distorting pricing models and pulling forecast accuracy into question. These moves have strained the supply of some components, including categories that were previously stable.

Recent analyses of U.S. policy decisions have demonstrated the power to redirect demand in capital in ways that reduce adequate supply flexibility. Given the unpredictable nature of the current administration’s decision-making, supply leaders have little confidence in which moves to make to prepare for the future.  

2. Facility disruptions can wipe out supply overnight

Discrete supply-chain incidents can remove specialized inputs overnight, sending far-reaching ripples through the industry. In August, a fire at a Kanto Denka plant in Japan became the perfect example of this. The flames halted production of ultra-high-purity nitrogen trifluoride (NF₃), a key process gas used in wafer etching and equipment cleaning. As one of only a few global producers of semiconductor-grade NF₃, Kanto Denka’s outage immediately triggered order rerouting and raised concerns about temporary capacity constraints.  

Further downstream, NF₃ derivatives are used for metal wiring in advanced semiconductors. Thus, the loss of even one plan can cascade into broader uncertainty at many levels of the supply chain. After such events, manufacturers dependent on specialized inputs are left facing uncertainty about process yields and lead times.  

3. Supplier distress brings unpredictability to roadmaps

In September, Wolfspeed filed for Chapter 11 bankruptcy, initiating a restructuring plan to stabilize its operations and reduce debt load. While the company emphasized a continuity of service, such reorganizations often lead to last-time-buy windows, shifting production priorities, or delayed shipments. For products at or near the end of their lifecycle, the risks are even more pronounced.  

Customers relying on Wolfspeed’s silicon carbide (SiC) components or power devices now face the risk of sudden redesigns or short-term allocation caps. For these players, a supplier’s financial distress can cause massive disruption to a product planning horizon.  

4. DRAM transitions shrink legacy options

The transition to DDR5 and HBM architectures is accelerating thanks to AI demand, and major memory makers are already phasing out older lines. In July, Samsung announced its end-of-life (EOL) timeline for DDR4, with production ramp-downs coming as soon as December.  

Compounding the problem is the fact that manufacturers are largely prioritizing production of components geared toward AI and high-performance compute (HPC) applications given their higher margins. This poses a growing challenge for legacy systems and industrial platforms that require long lifecycle support and multi-sourcing options. As DDR4 becomes increasingly scarce, OEMs and EMS providers face shrinking availability, higher prices, and fewer alternatives.

Combined with rising AI infrastructure demand, DRAM constraints are bleeding into nearby categories, most notably PCBs. With a smaller concentration of suppliers, production capacity has been booked out for months, leaving many OEMs, CMs, and EMS providers with no one else to turn to.

The consequences for procurement and engineering teams

While supply shocks grab headlines, their real impact is felt on the factory floor and in engineering labs. As availability tightens, organizations are more frequently encountering practical risks that threaten to disrupt product roadmaps and expose critical gaps in operational resilience. In the face of product unavailability, these pressures manifest in four distinct ways:

• Sudden production line stoppages triggered by delayed or missing parts. Whether due to tariffs, EOL notices, or vendor disruption, a single missing component can grind tightly integrated manufacturing environments to a halt.  ‍
• Cost inflation and eroded margins as sourcing shifts to the spot market or constrained vendors. This creates uncertainty, especially in consumer or defense sectors where long-term contracts lock in prices but not costs.  ‍
• Delayed time-to-market due to long qualification cycles for alternative components. This reduces competitive agility and adds an additional work burden to engineering teams already under strain.   ‍
• Regulatory recertification risk, especially in aerospace, medical, and other high-reliability sectors where drop-in replacements are not viable and even a minor component change can consume months or years of engineering, testing, and documentation resources.  

In these high-stakes environments, reacting to shortages with last-minute buys or emergency redesigns is not only expensive, but often impossible. It also opens the door to counterfeit risk or compromised quality, which can then cause long-term reliability issues that aren’t apparent until failure in the field.

Mitigation strategies: Build resilience into your supply chain

While no organization can prevent or perfectly forecast global disruptions, the impact of component unavailability can be mitigated through proactive design and sourcing strategies. Based on lessons from past cycles and recent case studies, Sourceability recommends a layered approach.

1. Audit and diversify the BOM

Avoid single-source dependencies by identifying vulnerable components and pursuing alternate qualified parts where possible. When alternatives aren’t available, consider functional alternatives or ways to otherwise enable multiple sourcing paths.  

2. Monitor market signals in real time

Outdated lead time assumptions and quarterly forecasts can yield disastrous results. Teams need access to real-time market intelligence that flags risk events early. Whether it’s a factory fire, EOL notice, or a new government policy driven export restriction, advanced notice gives teams the necessary lead time to pivot.  

3. Establish franchise and global sourcing partnerships

Franchise partners offer traceability and quality assurance, offering valuable peace of mind that your main and alternative supply lanes are reliable. Moreover, the global sourcing capabilities gained by working with a partner helps extend reach into hard-to-find or end-of-life inventory.

4. Implement structured case management workflows

A flagged risk is only useful if it leads to action. Organizations should implement case management systems that escalate alerts into prioritized purchasing, qualification tracks, and last-time buy decisions. Doing so maximizes the benefits of an early warning system and mitigates the chance of severe disruption.

Unavailability is here to stay, but disruption doesn’t have to be

Today’s trend of component unavailability isn’t an anomaly. It is the result of a broader shift in how the semiconductor supply chain operates and the industry’s inability to adapt fast enough to counteract it. Amid persistent geopolitical risks, aging infrastructure, and a demand profile that is increasingly shaped by AI and HPC, organizations can no longer afford to treat component shortages as one-off events.

Fortunately, the right tools and partnerships make it possible to stay ahead of the curve.

Sourceability provides solutions and equips your teams with the help they need to overcome any supply chain uncertainties. With our market intelligence tool, Datalynq, you can upload your BOM, uncover risks, and work with our global exports to develop an action plan that uses franchise inventory, global sourcing, and case management workflows to keep your builds moving.

Although component unavailability is becoming more common, supply uncertainty doesn’t have to slow you down.