Unfortunately, over the past three months the market has seen further increases in manufacturers lead-times as well as more product lines going on allocation. The availability of electronic components in the marketplace is not yet improving and some product lines and packages are suffering more than others. Product availability and workable lead-times can still be achieved with effective supply chain management and forecasting. However, with the availability in the marketplace decreasing, effective forecasting is now more critical than ever.
Key Capacity and lead-time issues
Micron are still experiencing difficulty in fulfilling open orders through distribution. In some cases this has led to examples of Micron cancelling distributor orders with the only explanation being given that there is no available capacity to build. This has been observed even with last time buy orders.
Vishay’s fab constraints are not improving. Lead-times are still in excess of 52 weeks on Yageo, Murata, Samsung, AVX and TDK passive lines with some components reported out as far as 90 weeks.
ST Micro lead-times remain stable at around 26 weeks but are not yet showing any signs of improvement. For STM8 and STM32 devices, lead-times are forecasted to increase further during Q1/18.
On Semi are struggling to get raw materials for their automotive and small signal market which is driving lead-times up on these devices. Lead-times are forecasted to increase during Q1/18 especially on SOT23 and SOT323 packages.
Rohm have put transistors and diodes onto full allocation.
Texas Instruments lead-times are extending beyond 14 weeks for TSOP and SO packages.
Texas Instruments implemented a new price structure in January 2018. This will affect all new orders moving forwards. In addition, products are no longer supported with design registered pricing.
Littelfuse pricing has increased around 3% over the last 3 months.
Xilinx are warning of price increase between 50% and 100% effective from 1st March 2018.
NXP are expected to put between a 1% and 3% increased on product in Q1 as they continue to struggle to source wafers.
ST Micro look to increase MCU pricing by 4% due to raw material shortages.
Toshiba is considering an IPO of its prized memory chip business if an agreed $18 billion sale of the unit to Bain Capital fails to gain antitrust approval by the end of March 2018.
The Qualcomm/NXP merger has not yet completed with one more approval pending from China.
Copper pricing is climbing with a value of over $7,000 per tonne in Jan 2018 which is the highest since Q1 2014. Copper prices are increasing partly due to China’s production of electric vehicles and the copper content used in the batteries of these cars.
Chinese New Year (Year of the Dog) is fast approaching and Far East factories will be closed to celebrate between the 12th and 23rd February. At least four weeks lead-time should be added to all Far East PCB orders during, and either side, of this celebratory period.