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…

Semiconductor Sales On Pace For Record Year

The semiconductor industry has every reason to be optimistic for the rest of the year. Global semiconductor sales registered their highest-ever quarterly sales increase during Q3 to $107.9 billion; and optoelectronics, sensors, actuators and discretes (OSD) are on track to set record-high annual revenues in 2017. The Semiconductor Industry Association (SIA) reported global Q3 chip sales…

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…

Supply Chain Feels Price & Delivery Impact of Harvey

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,…

Price Hikes Drive Improved Semiconductor Forecasts

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…