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Electronic Component Market Review

As always Nexeya works at forecasting and controlling costs and lead times as much as possible. In 2020 Nexeya was able to absorb both cost and lead time increases and will strive to continue this offering in 2021. Unfortunately the year has started with indications from manufacturers and distributors on increased pricing and lead times.

Capacity and lead-time issues

  • Lock downs in the Far East have caused extended lead-times on many components from manufacturing operations, to back end factories that carry out test and packaging processes

  • There is a global uptake in demand for temperature sensors, pressure sensors and flow sensors to continue to support with ventilators, thermometers and CPAP machines. These sensors are moving on to allocation, with the continued increase in demand anticipated until Q1 2021.

  • TE Connectivity is struggling still with allocation on relays (still 52 weeks)

  • There are reports that Vishay IHLP inductors are on 70 weeks plus, forward visibility of demand is crucial.

  • AVX lead-times are continually reported to be 30 weeks plus, and in some instances up to 40 weeks. This situation has been compounded by the forced closure of their El Salvador plant that lasted 3 months until 15th June.

  • Sources have advised that Littelfuse capacity in Mexico has been operating at around 45%, with 451, 452 and 152 Nano fuse lead-times being at 26 weeks.

  • It is widely reported that ST Microelectronics have limited available capacity for Q3 and Q4 2020, with STM32xxx and STM8xxx MCU’s being severely affected by capacity constraints

  • NXP have imposed 45-day NCNR window during Q3 to try and manage output and allocation for microcontrollers in the hope of keeping lead-times at around 16 weeks, or less (24 or less for Network Processors).

  • Microchip have added 7% to some legacy Atmel lines as of 7th July affecting all back orders as well and new orders.

  • It is widely believed that Samtec lead-times and output will return to normal from 15th August after they saw typical lead-times of around 8 weeks extend to 12+ during May.

  • Renesas lead-times are over 20 weeks and in some cases 30 weeks. Expediting requests are reportedly not being processed whilst they are in recovery.

  • Cypress had a RAM machine failure on their JCET site, along with Government enforced closures of their Philippines operations stretching lead-times from their usual 8 weeks to 16 weeks; something that is not common with Cypress. The hardest-hit lines are legacy IDT/Intersil lines.

  • With remote working here to stay, the demand for components to support remote devices such as laptops has increased, causing some capacity issues with connectors, cables and sensors.

  • Texas Instruments lead-times are extending across all product ranges, further fuelled by a shortage or air cargo availability.

Pricing Uncertainty

  • Pricing is still volatile, with planned manufacturer increases observed, as well as increases due to constrained supply of product, capacity and raw materials

  • Many On Semiconductor lines are showing a projected price increase trend over the next quarter.

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