Global semiconductor markets have tightened in recent months, leading to continued speculation that allocation could bite as we head towards the second half of 2018.
Many component manufacturers are suffering from capacity constraints which, coupled with high demand from high-growth sectors, has seen many lead times increase. Regular buyers of Deutsch, TE and Vishay lines will be all too aware of this situation, with lead times now being quoted out at twelve months and above in some cases.
Our information also indicates that other major manufacturers, such as Infineon, Nexperia, and ON Semiconductor, have also posted noticeable lead time rises since our last update towards the end of Q1 2018.
For an in-depth analysis, read our full market report below.
Amidst rising lead times in other areas of the semiconductor industry, the analog sector has been rather stable as of late. There has been no change of note regarding the lead time or availability of parts, providers buying departments with a fair degree of stability when planning long-term purchasing strategies.
The overall supply of discrete semiconductors remains tight, something that is beginning to seriously impact the sector as a whole. Nexperia, Toshiba, and Vishay, three major manufacturers in this area, have all posted sizeable lead time rises, with power MOSFETs and TVS/Protection lines most affected.
It is no surprise to note that Vishay has posted lead time increases for many of its discrete lines, given that the Japanese manufacturer has suffered from widespread capacity constraints. Vishay-manufactured TVS/Protection lines are now being quoted out at fifty-six weeks while power MOSFETs are out at a comparatively manageable forty-four-week timeframe.
In our last report, published in February, we noted that lead times for many Infineon items had risen. This time around, we can share a mixed update. Lead times for bi-polar power lines have increased by fifteen weeks to now stand at a joint sector high of forty weeks. However, Infineon has been able to substantially cut lead times for its RF devices and thyristor lines, with both product groups now being quoted out at twenty-six and twenty-eight weeks respectively – down from forty weeks.
Historical issues also remain, with the supply of IGBTs continuing to be at a critical level. Market analysts do not expect this situation to improve in the short-term, with Q4 2018 accepted as the earliest time when lead times and availability will improve across the board.
News emerged last month that Micron was forced to halt production at one of its main manufacturing facilities after a gas generation system malfunctioned. The issue was quickly fixed, though the temporary pause in production has had a slight effect on the wider memory market.
Avril Wu, a research director at the market analysis firm DRAMeXchange warned buyers that subsequent prices rises were likely, telling EPSNews that the increase would “be higher than [a] previous forecast of three percent.
Aside from a potential price hike, long-standing issues remain with the availability of DDR3 parts constrained and both Toshiba and Micron keeping its popular NAND flash items available on an allocation-only basis.
The average lead time for optical devices, such as LEDs, has stabilized in the past few months. There has been one major development since our previous update, however, as Vishay has massively increased the lead times for its couple products from twenty-four weeks to thirty-six.
DSPs & Microcontrollers
Lead times for digital signal processors (DSPs) and microcontrollers (MCUs) remain at a high level across all manufacturers. Due to this, franchise distributors are continuing to ask OEMs to provide long-term purchasing plans in order to secure stock. For many purchasing departments, this can be problematic given the often ad-hoc nature of production runs and product development.
Since our last report, lead times through franchised distribution times have stayed fairly constant. There is one exception, though, and that is Texas Instruments’ DSP product families, which are now being quoted out at thirty-two weeks, up from twenty-six.
After a prolonged period of stability, Texas Instruments has increased the lead times of its programmable logic parts by fifty percent, with lines now available at eighteen weeks instead of the twelve weeks quoted last month.
The other two manufacturer manufacturers in this sector, Microchip and Xilinx, have both managed to keep their lead times static at twenty-four and eight weeks respectively.
The market situation for standard logic parts continues to be tense, with many industry sources predicting that wholesale price rises are on the horizon. That said, lead times have decreased in recent weeks, with Nexperia, ON Semiconductor and Texas Instruments all cutting their lead times by a fortnight.
As an independent stocking distributor of electronic components, Lantek Corporation can help OEMs and CEMs avoid problems related to lead times and allocation. With 190,232 lines in stock and access to a worldwide component database, we can get the parts you need when you need them.
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- Posted by Lantek Corporation
- On April 19, 2018