IP&E Users Get Creative as Component Shortages Linger

Editor’s note: The most ubiquitous components in any electronics design – interconnects, passives and electromechanical (IP&E) devices – are in the midst of an unprecedented supply shortage. What distinguishes this scarcity from others is the broad base of markets that are desperate for IP&E.  OEMs are facing idle production lines while they wait for devices…

Tariffs Raise ‘Red Flag’ on Component Supply Risks

Electronics executives and industry experts are all over the map regarding the impact of U.S. and China tariffs on component supplies, OCMs, distributors and their customers. One thing is crystal clear – tariffs, or “taxes,” in one form or another are going to be passed on to buyers. Research and investment firm Morgan Stanley projects…

Rutronik

Germany’s Rutronik Expands its Presence in the Americas

For decades, U.S.-based electronic component distributors’ global growth strategy was acquisition. Beginning with the EU, American distributors acquired foreign competitors to establish themselves in a geographic market. The same is true for Asia-Pacific, and acquisitions there will likely continue. For foreign distributors entering the Americas the trend has been different. While there have been acquisitions—by…

double ordering

Double Ordering of Electronic Components Hits ‘All-Time High’

Although the electronics supply chain has been dancing around the issue of double ordering for several quarters, a recent Morgan Stanley report finds there’s been a “significant uptick” in double ordering that has extended component lead times even further. Evidence of double ordering also has analysts questioning the sustainability of the current component-demand upcycle. “To…

Allocation 2017: What’s Behind the Component Shortage

Component shortages are not just about increased demand. Any number of factors – production capacity, supply chain disruptions, obsolescence and technology migration – can contribute to product scarcity. For 2017 and 2018, supplier merger and acquisition (M&A) activity can be added to the causation list. Semiconductor and tech mergers reached an all-time high in 2016 and formed…

Component Shortages to Last ‘Longer Than Expected’

There’s no short-term relief ahead for electronics manufacturers that are scrambling for components. Tight supplies of capacitors and resistors are expected to last into mid-2018—longer than industry experts expected. The dreaded words “allocation” and “double-ordering” are coming up more frequently, meaning OEMs and EMS providers are facing long-term sourcing challenges. Thick- and thin-film chip resistor…

Component Trends: Some Memory Allocation

Memory components continue to be the most volatile segment in the supply chain in October, according to Avnet’s most recent Market & Technology Trends report. Similar to prior months, both memory prices and lead times continue to increase. Across the market, overall memory availability is running 6 weeks to allocation, according to Avnet. DDR-3 SDRAM…

Severe DRAM Allocation? Reality Suggests Differently

Spot prices for DRAMs have shot up 19 percent since a recent fire at a SK Hynix plant in China halted production at the industry’s second-largest memory supplier’s facility but fears of “allocation” – one of the most dreaded words in the purchasing community – will eventually prove unfounded. The SK Hynix plant shutdown sparked…