Ongoing high demand for electronic components contributed to Arrow Electronics Inc.’s double-digit growth in the second quarter (Q2) of 2018. Sales reached $7.39 billion, an increase of 15 percent from sales of $6.42 billion in Q2 2017. Second-quarter net income of $170 million, or $1.92 per share on a diluted basis, compared with net income of $100 million, or $1.11 per…
The causes, effects and implications of “The Great Component Shortage of 2018” have been thoroughly analyzed. The automotive and IoT industries have been driving unprecedented demand for smaller and more efficient passive electronics, which in turn has stretched lead times for these once- commoditized components to the breaking point. What hasn’t been discussed, however, is the equal…
For any procurement department worth its salt, finding the right suppliers goes well beyond the question of pricing and quantity and enters into looking at how the selection of one supplier over another changes the organization’s risk profile. The Resilinc R Score is working to help streamline the process of making those determinations. The ranking…
Contract prices of NAND flash products have decreased in the first two quarters of 2018 due to the traditional off-season, and capacity expansion of 64/72-layer 3D NAND flash, according to DRAMeXchange, a division of TrendForce. Further price declines are expected in the third quarter (Q3), although a bit moderated, until the fourth quarter (Q4), when steeper…
DRAM supply and demand is so volatile that memory production, prices and availability are often measured separately from other semiconductor products. The electronics industry is currently in the midst of shortages of many critical components. An injunction, which has halted U.S.memory manufacturer Micron Technology from producing certain DRAM and SSD products in China, may press an…
U.S. manufacturing activity accelerated in June—but so did anxieties around electronic component shortages and tariffs. The Institution for Supply Management’s leading production index, the PMI, increased by 1.5 percent in June to 60.2. However, electronic component constraints are being felt across multiple manufacturing sectors. “Electronic component supply issues continue to disrupt production,” a transportation industry…
Electronic data interchange (EDI) has been a staple of the electronics supply chain for decades. EDI links are used between component makers, distributors and end-customers to share data crucial to managing the supply chain—price, orders, lead times, availability, transaction records, replenishment signals and more. Historically, though, these links have been customized, meaning partners essentially had…
The North American franchised distribution industry had a robust 2017. The electronics industry saw the signs of a turnaround in the second half of the year as demand spiked and lead times extended for memory ICs (DRAMs and NAND flash), capacitors, resistors, discrete semiconductors and power components. Longer lead times – and allocations – have…
Semiconductor industry analysts and market watchers expressed concern after U.S. President Donald Trump announced that the U.S. would impose 25 percent tariffs on $50 billion of Chinese goods, including many products in the semiconductor supply chain. U.S. chip firms and their suppliers largely oppose the tariffs and the escalation of a trade war between the world’s…
This is the second article in a two-part series The Industry 4.0 revolution is enabling new levels of automation, including a new generation of sensors-rich automated guided vehicles (AGVs) for use in the first wave of smart manufacturing and distribution facilities. This revolution also requires new ways of thinking across all aspects of materials handling, especially…