The first half of the year was dominated by the idea that a sustained period of allocation was just around the corner. Those fears are yet to be born into reality, though the entire electronics industry has witnessed lead times increase and the general availability of parts decrease.
From May onwards, the demand from high-growth sectors such as industrial, automotive and automation, has surpassed all predictions. This, coupled with instability in the memory sector due to Toshiba’s ongoing woes, has seen demand outstrip supply.
The result of this has been expanding lead times and some price increases.
Texas Instruments has taken steps to double its lead times for both Interface and Voltage Regulator product groups. Buyers can now expect a twenty-four-week wait through franchise channels, up from twelve weeks recorded at the start of summer.
Supply of discrete products remains restricted, with four major manufacturers – Fairchild, Nexperia, ST Micro and Toshiba – increasing their lead times in recent weeks.
Bain Capital’s purchase of Toshiba Memory should install some market stability, but that is unlikely to be seen until the turn of the year at the latest.
According to our information, there has been no change in the availability of optical product groups over the summer.
DSP & Microcontrollers
Lead times are generally high, though they have stabilised after months of incremental increases. There has been an exception in the area, however, ST Micro has slashed lead times from twenty-six weeks for certain product groups down to fourteen.
There has been a widespread reduction of lead times, with Fairchild, Nexperia and Texas Instruments all bringing their average down over the summer.
Microchip product groups now come with a manageable eight-week wait, down from twenty-four weeks. However, Texas Instruments has moved in the other direction, doubling its lead time.
Make use of Lantek to avoid lead time complications
Semiconductor manufacturers tend to prioritise Tier One OEMs first and then franchise distributors second when it comes to allocating available stock. Franchise sources follow the same principle, ringfencing stock for their biggest customers and leaving everybody squabbling over any remaining quantities.
As a result, we would advise businesses to expand their existing supply chains to avoid unfavourable price rises, shortages and the long wait to secure necessary levels of stock.
Lantek Corporation has a specialist procurement team that can act quickly to lock down large quantities of electronic components – no matter where they are located.
With the aid of our purchasing team, stringent quality procedures and a trusted network of suppliers, Lantek can help OEMs and CEMs alike avoid problems associated with long lead times.