Since posting the notes below, our Singapore/Asia teams have reported the shortage of components is…
‘…gathering momentum with the likes of NXP, Microchip, On Semi, Infineon, Maxim & Power Integrations pushing out lead-times and increasing pricing.’
Reports from around the world confirm the supply situation in the global electronic supply chain continues to be very poor.
The central cause is the effect of the Covid-19 pandemic. Component manufacturers are still catching up on time lost through factory shut-downs in 2020 while product manufacturers, having slashed production and component purchases because of falling orders, are now facing increased demand.
Unfortunately for them, lead times for semiconductors, microcontrollers and MEMs are running at over 30 weeks.
There are also long delays on popular back end packages, including SOT 523, as well as on power semiconductor derivatives (e.g. SiC IGBT and MOSFET) for electric vehicles and charging stations.
The discrete device outlook globally is also poor, with a minimum of eight weeks and running on to between 24 and 40 weeks.
In all, it is anticipated key component supply is unlikely to improve in the coming months – indeed, some stocks may go on allocation and legacy components almost impossible to obtain.
Prices up too
Not surprisingly, electronic components, batteries, raw materials and freight costs are also on the increase.
- The prices for automotive chip products are reported to be going up by 10 to 20 percent and batteries by an average three to five percent.
- The prices for gold, silver (in particular, thanks to speculation), copper and oil are all increasing – silver by 20% and copper by 17.5%. Cardboard went up by 5% earlier this month.
- However, the price for steel rebar has dropped by US $47.5 in the last month.
- Against that, freight import / exports prices are at a five year high.
“These issues continue to cause concern,” says John Harley, OSI Electronics UK’s Director Business Development UK & EMEA.
“The supply and cost situation emphasise the benefit of working closely with your CEM partner to ensure you can mitigate as much as possible delays caused by the ongoing semiconductor shortages, general market tightening on components to look at alternatives, longevity of supply and maintaining a constant eye on the rapid changing situation.
“While we have build capacity and control over our assembly, the material lead-time and cost increases we are experiencing on a daily basis only make for unwarranted delays.
“We are fortunate in having a global supply network through being part of the OSI group, which has a $120m+ budget for purchasing electronic, electrical and mechanical components via our offices in the Americas, Asia, the Far East and Europe.”
OSI Electronics UK is a subsidiary of Californian based OSI Electronics.
Posted 11th February 2021 – updated 5th March 2021