A better Path to Purchasing Cost Reduction

  Lytica Inc. offers our customers an M&A Synergy Savings report. For us, this is an interesting report because it allows us to observe in detail the purchasing effectiveness of two companies that have operated independently. For our customers on an acquisition path, this is a very important and informative report. Synergy savings are the…

Memory Prices Tighten but is it Sustainable?

Memory semiconductor vendors have engineered the seemingly impossible. Prices are rising, inventories are tighter, there’s even talk of shortages in certain product areas due to a fire that halted production at a major facility and overall, the fundamentals of the memory market are seen as much better today than they have been in years. How…

What happened to ‘Real Men Own Fabs’?

Jerry Sanders III, the oft-quoted, hard-fighting, co-founder and former CEO and chairman of Advanced Micro Devices Inc., who made the chest-thumping statement from which I took the headline for this blog, was right about many things in his long career in the semiconductor market. He was also wrong about a few things. Taking on Intel…

Distribution

Delph: Avnet aims to be even Bigger in IP&E

Avnet Inc. prides itself on being a broadline distributor that’s able to supply all the components needed by its thousands of customers globally. That hasn’t stopped the company from trying in recent years to stamp its imprint on the interconnects, passives and electromechanical (IP&E) market, a segment where it has an understated position despite being…

The Lure and Deception of Pricing Secrecy

Pricing secrecy is rampant in the electronics industry, governed by a strict regimen where suppliers are forbidden to disclose how much particular customers paid for their products and OEM and EMS provider procurement and purchasing experts consider pricing a “competitive weapon.” We are all living a lie. Let’s take one recent example from a large…

Surplus Parts Firms Sometime Make Sense

In my last article, I discussed electronics surplus houses and their role in the electronics supply chain. This article reviews one specific surplus electronics supply company and how the day-to-day operations take place. (See: Resolving Emergency Components Shortages). HSC, also called Halted Specialties Co., is located in the heart of Silicon Valley where big distributor…

Commoditization & Consolidation: Scourge of IP&E Market

There are numerous challenges ahead for interconnects, passives and electromechanical (IPE) components manufacturers, component distributors and equipment makers. Commoditization – the rapid erosion of pricing and profit margins – isn’t a problem for just suppliers. It poses a challenge for distributors and, in the longer run, OEMs too; what they gain in lower pricing for…