Electronic Component Lead Time Update – January 2019

As we embark on a new year, the electronic component market looks to be as unparalleled as 2018. It was a year of continued growth for global electronic component markets, but we still saw an increased risk of shortages.

The worldwide electronic component market grew by an average of 9% except for the Nordic region of a 1% decline. However, we saw manufacturers of small case size MLCC’s influx the market and in turn extended their lead-times of the legacy large case size MLCC’s.

We’ve also seen multi-million-dollar customer investments with manufacturers to ensure an agreed share of passive components for exclusive use.

As a result, many long-standing issues remain. The beginning of 2019 still shows lead times remaining high for some memory ics, discrete semiconductors, optoelectronics, MCU’s and DSP’s.

Analog 

Lead times for analog electronic components have stayed stable since June 2018 but Texas Instruments have extended lead times for these ics by 10 weeks since our last update.

We are also aware that many high-end products (both interface and op-amps) are being quoted with lead times of twenty weeks and above. Reports showed that prices through franchise sources increased and will continue to do so.

Discretes

As has been the case for many months now, the supply situation for discrete semiconductors continues to be tight. In some instances, supply has become extremely critical due to demand outstripping supply. Most noticeably so for power mosfets, where some lead times are stretching out to 39 weeks.

We have also noticed that lead times for some zener diodes have stabled over the last 6 months, Vishay’s lead times for these discrete semiconductors are at 36 weeks.

On a positive note, ST has managed to cut lead times in the last 6 months by an average of 8%. The biggest decrease that we have seen reported is its range of TVS/Protection, with franchise sources now quoting them out at a maximum of 30 weeks, down from 40 weeks.

Also, according to our information, the general market availability of small-signal discretes has improved, with Nexperia, Infineon and Vishay all cutting lead times by at least 3 weeks.

Memory

Prices, lead times and overall availability of memory products remain stable, something which might provide some relief to buyers. Allocation has been lifted on Toshiba and Micron lines, but ST are still quoting 38 weeks on some of its NVRAM lines.

Optoelectronics

No lead time changes reported between the months of June and December. However, we would expect some further movement as we head towards Q1 and Q2 2019 as the supply of various LEDs are reported being on allocation.

Digital Signal Processors & Microcontrollers

Lead times for DSPs and MCUs have been gradually decreasing since June 2018 and that trend shows stability in the next quarter. The market average now stands at 21 weeks, a sink of 8% since the middle of 2018 but our analysis indicates that manufacturers are increasing prices on older technology in the segments Auto Microcontroller and Processors (AMP), Micros and Smart Antenna Solutions (SAS) effective immediately.

Programmable Logic

Lead times for programmable logic devices have increased in the past 6 months from an average of 17 weeks up to 24.

With limited availability, many franchise distributors are requiring OEM customers to provide long-term purchasing plans in a bid to secure stock. In many cases, those who are unable to offer accurate forecasts – not to mention new customers – are finding it more and more difficult to get firm delivery schedules from authorized suppliers. Due to this, we would recommend OEMs to explore independent distribution channels, especially so if parts are urgently needed.

Standard Logic

The market situation remains relatively tight and lead times are stable. However, we have seen numerous franchise sources increasing prices over the last 6 months.