Electronic Component Lead Time Update – February 2018

There has been little in the way of significant change regarding the lead times of electronic components since our previous update.

Many market sectors have stabilized, providing buyers with some degree of confidence as they plan their long-term purchasing strategies. However, our information is that there has been widespread lead time increases for discrete semiconductors, something that needs to be accounted for.

Download our latest lead time table

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Electronic Component Lead Time Update – January 2018

The electronic component marketplace has been relatively stable since our last update towards the end of last year. This should be welcomed, as 2017 was characterised by uncertainty across the sector, with lead times rising and – at one point – the threat of allocation looming large in response to unprecedented demand.

Hopefully, 2018 will be an easier year for purchasing departments to navigate. However, there may be some bumps along the way. Some franchise distributors in Europe are warning about widespread prices and lead times rises within the next six months.

Looking at the short-term, we have noticed a handful of marked lead time increases. The most notable is perhaps associated with the availability of discrete IGBTs – lead times for those products are now up to fifty-two weeks.

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Electronic Component Lead Time Update Q42017

There has been a lot of market fluctuation since our last update in October with popular sectors being predominantly affected.

Severe supply constraints remain, with franchise distributors warning that they may be unable to deal with impromptu demand and that they will require long-term projections from their customers in order to secure stock direct from the manufacturer. Because of this, we would advise purchasing departments to plan well in advance or make concerted efforts to broaden their supply chains.

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Lead Times Increase During Q12017

With summer in full swing, it is the perfect time to take a look at the lead times of electronic components. This year has, so far, been dominated by the quiet whispers that suggest there could be the widespread return of allocation within the next few months.

At the time of writing, those reports have proved to be false, though lead times have expanded during the first half of the year. From May onwards, there has been higher demand than expected from high-growth sectors, particularly industrial, automotive and automation.

We can also say with a fair amount of certainty that franchise distribution channels are struggling to keep up with demand from major OEMs.

Talking to the EPS News website, Michael Knight warned that this high level of market activity would continue, saying: “We are anticipating this summer things will get even tighter, particularly in resistor chips [and] inductors.”

Indeed, ECIA’s latest North American distribution report corroborates this statement, as to do comments from Vishay’s CEO, Dr. Gerald Paul who noted that “shortages of supply and long lead times….raise concerns.”

The market is also beginning to feel the consequences of the recent spate of high profile mergers and acquisition. With product lines being rationalised, both OEMs and franchised distributors have fewer options to secure necessary stock. After years of being able to play manufacturers off against each other, they now find themselves at a competitive disadvantage in what has become a seller’s market.

Additionally, the problems that have engulfed Toshiba this year has impacted the availability of components. Although confined to the ultra-competitive memory market, lead times have increased, and so too has pricing. To make matters worse, a number of Toshiba and Micron lines have been placed on allocation to help the manufacturers deal with demand.

As a result, we would advise all purchasing departments to expand their supply chains to avoid unfavourable price rises, shortages and the long wait to secure stock.

With lead times rising and demand remaining at historically high levels, the threat of widespread allocation cannot be discounted.

Atlantis Electronics has a specialist purchasing department that can lock down large quantities of electronic components – no matter where that stock is in the world.

Thanks to our procurement team and trusted network of suppliers, we can help OEMs avoid extended lead times, sudden price hikes and the threat of allocation.

Call us on +1 905 290 1563 and speak to one of our representatives today.

To view our latest lead time table, visit this link: Atlantis Lead Times (July)

Intel’s Boss Discusses Moore’s Law and VR

It is perhaps the most famous prediction ever made in the electronics industry but in recent months, industry expert had started to question the validity of Moore’s Law in today’s rapidly developing world.

Half a century, Gordon Moore, the founder of Intel, declared that computer power would double every two years. For decades, Moore’s estimate rang true as technology companies were able to continuously improve the performance of their chips on a regular basis. That was until the entire industry appeared to reach a crunch point when physicists and technology giants came out and said it was no longer possible to keep pace, bring Moore’s Law to its knees.

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U.S Researchers Develop Sabotage-proof Chip

Tamper-proof electronics?

A chip that can self-authenticate its own calculations is currently being developed in America.

In theory, the device, which is being designed by a team from New York University’s Tandon School of Engineering, will be to check if its performance is being compromised by the presence of a Trojan or other form of malware.

The chip verifies itself thanks to the addition of a second module that simultaneously carries out and compares calculations. If there is a deviation, it will report an error.

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U.S Department of Defense Passes New Anti-Counterfeiting Measures

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A new guide published by the United States’ Department of Defense (DoD) earlier this month will add a further protective layer to the supply chains used to source parts for military projects.

Call the Defense Federal Acquisition Regulation Supplement (DFRAS), this new collection of rules look likely to create a stringent approach to purchasing when dealing with government contracts. It is hoped that the procedures will help prevent – or minimise – counterfeit components from entering key supply chains, ultimately benefitting both contractors and the U.S. government.

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“We don’t want to come under the wing of a certain manufacturer,” Renesas boss says

Renesas

Shortly after being appointed the chief executive of Renesas, Bunsei Kure announced that the Japanese automotive chip maker would remain an independent entity, despite rumored interest from fellow electronics company Nidec Corp.

Renesas is believed to be a prime target for acquisition, as its main shareholder is the state-backed Innovation Network Corp of Japan (INCJ) fund.

The INCJ was formed in 2009 as a vehicle to help drive investment in key technological areas – such as chip making. However, the fund is under an obligation to sell its stake before 2024.

“We don’t want to come under the wing of a certain manufacturer,” Kure told the press at a news conference in Japan.

Instead, he stated the Renesas “wants to be held by a wide range of investors.”

Nidic is thought to be extremely interested in acquiring a large stake in Renesas to help it challenge the likes of Robert Bosch and Denso Corp in the global automotive parts sector.

Kure did not rule out strategic alliances with other chipmakers, however.

“It is possible that we will team up within the semiconductor sector to complement what we lack.”

The semiconductor industry is currently seeing a large number of mergers and acquisitions. Last year saw over $80-billion worth of deals go through, including NXP’s purchase of Freescale Semicondur Inc, and ON Semiconductor Corp’s deal to buy Fairchild Semiconductor.

U.S. passes the Secure E-Waster Export and Recycling Act

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The U.S. Congress has passed a bill in a bid to curb the amount of electronic waste that is shipped to China, only to re-enter supply chains in the form of counterfeit products.

Entitled the ‘Secure E-Waste Export and Recycling Act’ (SEERA), the legislation was a cross-party promotion, sponsored by Congressmen Gene Green and Paul Cook.

Previously in 2011, the Senate Armed Service Committee started their own investigation into the presence of counterfeit electronics that were uncovered within the Department of Defence’s (DOD) supply chain.

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A Polaroid Moment for Printed Circuit Boards?

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Be it a budget domestic appliance, throwaway gizmos or a state-of-the-art piece of research equipment, Printed Circuit Boards (PCBs) lie at the heart of all our devices.

Normally, to make a PCB requires a fair bit of expertise and some specialist kit. However, thanks to the work of a Printem, a Canadian-based start-up, we could soon be designing and producing basic PCBs from the comfort of our own computers.

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