Early data suggests that the global electronic supply chain grew during Q1 2018 when compared to Q1 2017, with pre-emptive reports predicting an overall increase in the region of 7%.
A booming manufacturing economy is helping to boost purchases of materials, leaving the Manufacturers Alliance for Productivity and Innovation (MAPI) to predict that the United States will regain all output that fell away during the 2008 recession by next year. Additionally, many high-tech sectors are growing at a rapid rate, the effect of which is felt across global supply chains.
During Q1 2018, we have seen lead times for multi-layered ceramic capacitors (MLCCs) skyrocket as demand outstripped supply. The situation, which is causing numerous problems worldwide, is unlikely ease until 2020 at the earliest.
Unfortunately, we believe that the current MLCC shortage will be the tip of the iceberg. Our research, coupled with strong industry rumors, suggests that global demand for many resistors and Power MOSFETs is about to reach maximum capacity levels and further waves of shortages could appear on the horizon. Similarly, we’ve noticed that lead times for LEDs and other optical devices are continuing to creep upwards, something that will need tracking in the coming weeks and months.
Due to high demand and the constrained supply situation, many manufacturers and franchised component distributors have started to prioritize existing customers and, in some instances, are refusing to take on new orders for constrained product types.
For a full breakdown of the electronic component marketplace, download our manufacturer lead time table and read our accompanying report below.
The overall availability of analog semiconductors continues to be tight, with low visibility reported. Lead times for both High-End and Commodities are high, with some lines on an elevated level, and there are reports that prices through franchise channels are increasing month-on-month.
However, there is some positive news. Our research indicates that lead times for Maxim Integrated have decreased by an average of 2 weeks and that ON Semiconductor is now quoting out its Interface lines at 20 weeks, a reduction from the 26-weeks seen during Q1 2018.
As has been the case for many months now, the overall supply of discrete semiconductors is extremely limited and there are fears that manufacturers will start to impose price increases to help increase production capacity. Franchise distributors are also reporting that there is a critical situation when it comes to IGBT product lines, with lead times of more than 42 weeks a common occurrence.
Despite ongoing supply issues, lead times across the discrete sector are slightly decreasing. The average now stands at 32 weeks, which is down from the six-month high recorded at the start of Q2.
Yet again, there has been little change regarding the availability of lead times of memory products. That means that many popular product lines remain on allocation.
Lead times for LEDs lighting components and other optoelectronic devices have been slowly rising since the tail end of 2017 and that trend has continued through the months of March and April.
At the time of writing, sector average lead times now stand at 15 weeks while maximum lead times are out at 18 weeks, an increase of 6% across the past six months.
A major factor for this rise can directly be attributed to the decreasing availability of Broadcom parts. We have seen that Broadcom coupler products are now being quoted out at 22 weeks, a sharp increase from the 12-week timeframe recorded last month.
Digital Signal Processors & Microcontrollers
Microcontroller lead times are stable, albeit at very high levels across all suppliers and manufacturers; average maximum lead times have increased from 30 to 32 weeks within the past month.
We have been made aware that lead times of ST Micro’s 8-, 16- and 32-bit devices have all gone up by 4 weeks since our last update, a move which is causing some availability issues through franchise supply channels. Correspondingly, NXP has also increased lead times for its 32-bit devices; with quotes now out as far as 39 weeks, we’d advise OEMs to explore independent distributors to avoid any potential delays in securing stock.
Last month, our research indicated that Texas Instruments had upped the lead times of its programmable logic products to eighteen weeks. Unfortunately for buyers who looked to secure alternative parts through different manufacturers to bypass this increase, Xilinx, another major name in this sector, has also implemented a lead time rise in recent weeks.
Xilinx’s increase – from 8 to 12 weeks – now means that the sector lead time now stands at a high of 18 weeks, something which should be a cause for concern as the average was 15 weeks just two months ago.
The market situation for standard logic components remains constrained, with franchise distributors warning that pricing may rise in the short term as a result.
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- Posted by Lantek Corporation
- On May 17, 2018