Electronics Manufacturers Favorable on Tax Reform

U.S.-based supply executives are receiving the Tax Cuts and Jobs Act (TCJA) of 2017 favorably. The tax reform, signed into law by President Donald Trump in December, will have a positive impact on U.S. manufacturers’ organizational, strategic and tactical considerations, managers said. The Institute for Supply Management conducted a special survey to gauge members’ familiarity…

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

Widespread Component Shortages Expected Through 2H 2017

The first half of 2017 is shaping up as the perfect storm for electronics suppliers as capacity constraints, merger and acquisition, obsolescence and higher-than-expected demand is creating component shortages across the supply chain. The risk of double booking has been cited in at least two research reports, indicating the 2001 inventory glut may be fading…

Price Cuts Shake Up LED Hierarchy

Declining prices are always a good news/bad news scenario in the electronics components industry. Buyers win when prices dip, but vendors have a hard time meeting revenue and profit goals. After experiencing a fall to the bottom and a price slump in LED during 2012-2013, quite a few LED enterprises have been forced to go…

Fab Capacity Stretched: Uptick in Sight?

For an industry that’s been in the doldrums since the 2009 recession, the words “strained capacity at chip players across the industry” are, ironically, welcome. The electronics components market has enjoyed an extended period of ample supply, and only a shortage or an unexpected surge in demand will spur the market into proactive purchasing for…