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SILICON
SILIC
CHIP
www.siliconchip.com.au
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Nicholas Vinen
Technical Editor
John Clarke, B.E.(Elec.)
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Editorial Viewpoint
“Second sourcing” should be applied to
more than electronics
You may have wondered why the same chip is available from different manufacturers – even relatively
new parts which you would think they would want
to keep exclusive.
For example, the LM833 (OK, not that new a part…)
was designed by National Semiconductor (as indicated
by the LM prefix), but you can also buy LM833 chips
made by ST Micro, On Semi and Texas Instruments (who now own NatSemi).
Why is that?
Well, mainly it comes down to the fact that many engineers (especially those
designing products for military use) are unwilling to design using parts that
are only available from a single source.
No doubt they learned their lesson at some time in the past when a supplier went out of business, and could not get replacement parts for their multimillion-dollar new-fangled tank/fighter jet/whatever. Military contracts likely
require second-sourcing, while commercial and industrial designers simply
prefer having multiple sources to avoid future problems.
I am reminded of this because of the supply chain disruptions due to the
recent outbreak of the COVID-19 virus. We rely heavily on goods from southeast Asia and China in particular, including critical supplies like pharmaceuticals and other medical supplies (sutures, bandages etc). No doubt, most
medical electronics are made overseas, too.
You don’t have to be Nostradamus to see the danger in this sort of reliance.
Sure, overseas suppliers can produce these items at such a low cost that local suppliers probably can’t compete. But for anything critical like medical
supplies, food, fuel and so on, any rational government body or organisation
must surely consider all the possible sources of disruption and have plans
to deal with them.
As much as I hate government subsidies, there is a case to be made to subsidise local industries which produce such vital products. This is to ensure
that we have at least some sort of supply in times of war, disease, natural disaster, widespread strikes etc.
Thus far (touch wood!) the impact of coronavirus in Australia has been
relatively small and relatively well managed.
But as we go to press, the mainstream media is full of reports of panic buying – some, like sanitisers, etc, related to misplaced fears of contracting the
virus. However, there are all sorts of relatively mundane products running out
on supermarket shelves – and there doesn’t appear to be a good reason for it.
Even if the local supply is relatively small, it’s better than nothing and
should be able to be ramped up, to deal with a loss of incoming goods from
overseas during times of disaster.
Perhaps now it will be realised how short-sighted it was to put so much reliance on overseas suppliers for critical items like drugs, and I hope plans are
being put in place to ‘second-source’ (and third-source, and fourth-source…)
them as quickly as possible.
Initially, that might mean alternative drug suppliers from places like India
or the UK (both of which have large pharmaceutical industries), but in the
long-term, we should have the capability for domestic production.
Now would also be a good time for the government to organise an inquiry
into what other critical industries might be disrupted by an unpredictable
event and what we can do, short-term and long-term, to minimise the impacts.
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