If the planned $18 billion sale of Toshiba Corp.’s flash memory unit to a consortium led by Bain Capital Private Equity, LP survives legal objections and receives regulatory approval, the deal can be expected to result in higher component supplies within the next year, helping to allay OEM fears of tightening purchasing conditions for the…
Chinese enterprises, government and public investment firms need a different international M&A strategy because whatever they are doing now is clearly not working in the global semiconductor market. China has built a $150 billion-plus technology war chest to transform its economy into a high-end IT powerhouse but Western governments have repeatedly checkmated those moves in…
Toshiba Corp. will struggle to sell its flash memory business without the acquiescence of Western Digital Corp., a fact the Japanese company seemingly ignored today when it signed a memorandum of understanding calling for the conclusion of acquisition talks with a potential buyer by the end of September. Even if Toshiba and the Bain Capital…
An already-tight electronics supply chain will get squeezed even more thanks to the negative effects of Hurricane Harvey. Even as a second hurricane was bearing down on the U.S., domestic manufacturers were preparing for prices and deliveries to be significantly impacted over the next three months. Hurricane Harvey struck a significant blow to the Houston,…
In the electronics supply chain, component date codes are ubiquitous. Similar in concept to the “use or sell by” date on perishable super-market items, date codes are an indicator that a part may be too old to perform to spec. Electronic components do have a shelf-life. Metals in components can corrode. Moisture and electro-static discharge…
Electronic component suppliers have been complaining for years about eroding prices. With many types components currently in short supply, prices have finally begun to tick up. But are any of these price hikes sustainable? Typically, the answer is “no.” A continual stream of better-smaller-faster components exerts downward price pressure on older-generation products. However, one research…
Electronics businesses that believe the so-called “conflict minerals” provision of the U.S. Dodd-Frank Act no longer applies to them should think again. Although SEC Acting Chairman Michael Piwowar recommended in April that the Securities & Exchange Commission not enforce the provision — which requires companies to disclose the origin of tungsten, tin, tantalum and gold…
Two months ago, Phil Gallagher re-joined Avnet—his employer for 32 years – after leaving Avnet and spending a year with specialty distributor TTI Inc. Gallagher, who was named president of Avnet’s Core Distribution business in April, returned to a different company than the one he left. Most significantly, Avnet has a new CEO; sold its…
Electrocomponents PLC has the potential to become a $10 billion enterprise within the next 10 years but to achieve this lofty goal, the U.K.-based distributor must venture outside the electronic components market and put down big stakes in the larger maintenance, repairs and operations (MRO) market. CEO Lindsley Ruth set the stage for Electrocomponents’ transformation…
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…