2019 – The Scarcity of Electronic Components Update

The scarcity of electronic components has taken a toll on component manufacturers, distributors, original equipment manufacturers (OEMs) and contract manufacturers (CMs).  2018 was a challenging year with spot shortages that continued to plague customers. As the second quarter of 2019 ramps up, the demand for high capacitance base metal electrode multi-layered ceramic chip capacitors (MLCCs), resistors, semiconductors and graphics cards continues to grow adding extensive lead times on quotes to electronic manufacturers.

This shortage of supply depends upon numerous impending issues, the most prominent of which is the advancement in technology. The 21st century is facing a surge of innovation with prominent industries such as; automotive, defense, mobile, industrial and internet of things (IoT) require more electronic components to meet the market demand. Electronic manufacturers have increased the number of electronic components used inside products which impacts supply and contributes to the scarcity of parts.  With the introduction of new inventions every day, existent components are becoming obsolete. This makes it difficult for suppliers to fill demand resulting in some leads times extending to over 12 months. This obsolescence issue virtually impacts all segments of the electronics industry.

Contract manufacturers are estimating that the long lead times and shortages for multi-layered ceramic capacitors (MLCC’s) may extend to four years. This is a sore topic in the industry for with pricing increasing by 60 percent in the last 6 months. Additionally, Infineon has issued an EOL notice for small signal products with an LTB of December 31, 2019. Xilinx and Rohm are also indicating extended lead times, which makes it essential to share long term forecast information with supply chain partners to maintain continuity of supply. Another example of the exponential use of MLCC’s is the iPhone.  Newer smart phones models are using far more components on the board with quantities of MLCC’s increasing from 500 to 1000.

Government policies, tariffs and trade agreements are also impacting component pricing and shortages.  Tariffs rates in the US on the import of components with the Country of Origin from China, continues to impact the supply chain. This not only adds cost to the product, it continues to create  an imbalance of supply versus demand for millions of electronic components

This puts pressure on the planning department to manage resources to minimize loss and get products out the door to customers.  Scarce parts can be an opportunity for scammers to introduce counterfeit components in the market requiring buyers and suppliers to have proper controls in place to avoid bad parts. Inland Empire Components inspects, tests and conducts multi-stage inspections using procedures based on AS6081 standards to ensure only the highest quality components are shipped to the customers for counterfeit avoidance.

Distributors and OEMs also report that price increases on legacy parts have increased exponentially over the last few months. In an effort to move customers over to newer technologies, less profitable components continue to be discontinued with suppliers encouraging buyers to move over to new technology.  It’s often a challenge to evaluate the cost saving of purchasing legacy parts against the price of a circuit board redesign.

All of these challenges call for a strong sourcing strategy. Extensive lead times require buyers and engineer to find alternative solutions.  This may include a complete redesign of a circuit board, last time buys, and sourcing from trusted independent distributors.

About Inland Empire Components, Inc.

Established in 1989, Inland Empire Components, Inc. is a WBENC Certified Platinum supplier and leading stocking distributor with millions of legacy, spare and new electronic components in stock located in their Lake Elsinore warehouse, with billions more available through an exclusive network of quality suppliers. Inland Empire Components, Inc. provides the most difficult to locate board level components to buyes and engineers withing the electronic manufacturing community.  The company services OEMs, EMS and distributors globally in the technology sector including aerospace, military, communications, medical, consumer and industrial industries. The company also provides sourcing and procurement and excess inventory solutions to small, medium and Fortune 1000 corporations from their ISO9001:2015 and AS9120B certified facility.


Dana Jiron
President & CEO
Business Development

Severe Electronic Component Shortages Forecasted for 2018

It’s been several years since the last major component shortage
and now electronic manufacturers are feeling the pinch. Demand is outweighing supplies and in some cases, customers have reported lead times of 24 months or longer. As distributors and component manufacturers issue Product Change (PCNs), End-of-Life (EOL) and Life Time Buy (LTB) announcements, buyer and engineers are scrambling to meet quarterly goals and production demands. With hundreds of thousands of electronic components, semiconductors and finished good products going obsolete every year, the 2018 component shortage is adding to the challenges facing the electronic part supply chain.

Another situation causing pressure on the supply chain is the fact that silicon wafer foundries have announced a planned 20% price increase for 2018 and possible shortages out to 2021. This is compounding the sourcing problem for electronic buyers.

Manufacturers GlobalWafers and SUMCO, who produce the majority of the worlds silicon wafers used to make electronic components including CPU’s and DRAM inside computers, site a shortage of 12-inch, 300mm wafers for the price increases.

A number of factors are causing the 2018 electronic component chip shortage including new industries such as the Internet of Things (IoT) and cryptocurrency mining  which is causing the shortage of graphics processing units (GPUs) and spotty availability of raw materials.

It is always recommended that electronic product design and engineering teams review bill of material (BOM) parts so they can be purchased from multiple manufacturers to avoid an interruption in the supply chain.

Dana Jiron
Inland Empire Components, Inc.



ISO9001:2015 and AS9120B New Revision

Distributor and Procurement Service Provider Certifies to the revised standards ISO9001:2015 & AS9120B (2016) LAKE ELSINORE, California Dec 5, 2017 –Inland Empire Components, Inc., an established local and global distributor of electronic components and procurement services, has revised and been recommend by Bureau Veritas to receive the new ISO9001:2015 & AS9120B (2016) Certification.

AS9120:2016/AS9120B is organized by the International Aerospace Quality Group (IAQG) and issued by the SAE G-14 Americas Aerospace Quality Standards Committee (AAQSC) – The AAQSC is the SAE standards writing committee responsible for developing the quality standards.  The IAQG includes delegates from aviation, defense and space companies from around the globe who provide guidance for the requirements of the higher quality management system.

The investment into the revision of the quality management system improves quality, cost, and delivery performance. Management has effectively implemented the revision demonstrating the ability to consistently provide products and services that meet and exceed customers applicable statutory and regulatory requirements.

As of this writing, there are only 235 companies worldwide that have the ISO9001:2015 & AS9120B (2016) certification. “Our focus is on continual improvement and customer satisfaction. By investing in revising our quality management system, our company demonstrates our commitment to our customers.” Dana Jiron, President & CEO

About IAQG

The IAQG is an international non-profit association under the Belgian law with office registered in Brussels (Belgium). The IAQG is a cooperative organization within the aerospace & defense industry comprised of 3 sectors (Americas – AAQG, Asia/Pacific – APAQG and Europe – EAQG).

The SAE G-14 Americas Aerospace Quality Standards Committee (AAQSC) is a technical committee established under the Aerospace General Projects Division of the SAE Aerospace Council. The AAQSC creates and maintains technical reports in the form of Aerospace Recommended Practices (ARP) and Aerospace Standards (AS) related to quality management systems and supporting quality-related processes.

Participants in the SAE G-14 committee include Original Equipment Manufacturers, Repair and Overhaul service providers, Distributors, Accreditation Bodies, Certification Bodies, Contract/Regulatory Agencies, and Trade Associations across the aviation, space, and defense industries.

The AAQSC is affiliated with the Americas Aerospace Quality Group (AAQG), a member of the SAE Industry Technologies Consortia. The AAQG is a Sector within the International Aerospace Quality Group (IAQG)

About Inland Empire Components, Inc.

Established in 1989, Inland Empire Components, Inc. is a WBENC Certified Platinum supplier and leading stocking distributor with millions of legacy and new electronic components in stock located in their Lake Elsinore warehouse, with billions more available through an exclusive network of quality suppliers. Inland Empire Components, Inc. provides the most difficult to locate board level components including diminishing supply, MRO, and spares.  The company services OEMs, EMS and distributors globally in the technology sector including aerospace, military, communications, medical, consumer and industrial industries. The company also provides sourcing and procurement and excess inventory solutions to large and medium corporations from their ISO9001:2015 and AS9120B certified facility.


Dana Jiron
President & CEO
Business Development


Lead Times Extending In The Electronic Supply Chain

Electronic manufacturing buyers and engineers are reporting passive electronic component lead times extending out to as much as twelve months. Passive categories including capacitors, diodes, inductors, resistors and transformers are all included in a widening gap between order dates and actual delivery dates.

Over the last 12 months, lead times have increased because the demand is outpacing supply and manufacturers capacity. Surface mount general ceramic capacitors lead times are continuing to increase. AVX, Samsung, Murata, and TDK are all quoting increased lead times and in some cases, severe part allocations. Panasonic fixed resistor lead times are 40 plus weeks out.

Low voltage mosfets and discrete lead times are extending out as the supply of On Semiconductor and STMicroelectronics show the most pressure with factories at capacity.

Automotive devices have been hit the hardest with lead times and allocations, although our customers report a strain across several categories within their Bill of Materials.

As always, it is recommended that engineering works with the design team to make sure parts are selected that can be procured from multiple manufacturers in order to avoid an interruption in the supply chain.

Dana Jiron
Inland Empire Components, Inc.

Electronic Components Shortages in 2017

The EPSNews Electronics Purchasing And The Supply Chain is reporting that obsolescence, mergers and acquisitions and an unexpected increase in demand for electronic components is causing component shortages up and down the supply chain.

As the supply of electronic components swings from too much inventory to extended lead times and ever increasing part obsolescence, distributors are reporting long lead times increasing across multiple products categories including: memory, discretes, IGBT, logic, optos, LEDs, MCUs, and mosfets.

“Demand is starting to outpace supply which is causing pressure on pricing and extending lead times” says, Dana Jiron, President and CEO of Inland Empire Components, Inc. “We’re advising our customers to consider last time buys now to avoid the high cost of circuit board redesigns”.

It is recommended that buyers and engineers have a conversation with their suppliers regarding capacity, lead times and product End-of-Life (EOL) and Product Change Notices (PCN) to determine the best actions to take to avoid emergency shortages.

Dana Jiron
Inland Empire Components, Inc.


Traceability or Where Has This Legacy Part Been?

bigstockphoto_eyesee_40215How do you get traceability to the original manufacturer on a part that is obsolete and no longer available from the component maker?

Inland Empire Components works with our clients to secure the supply chain by addressing the question, “Where did this part come from?”  Effective September 16th, 2016, the Defense Logistics Agency (DLA)  released Procurement Notes relating to the purchasing of part numbered items. The notes state that contractors to the DLA shall notify the contracting officer when  there is a change in the availability or revision of a part number.

The focus here is on the language regarding discontinued and obsolete parts and the traceability requirements of contractors. Our challenge in providing spare parts to the clients that rely on us for legacy components is providing traceability that is acceptable. The goal is to make sure parts are identified throughout the supply chain including the name and location of every supply chain intermediary between the contractor to the Government. I use this example to help my clients understand how we provide traceability when required.

There are various solutions to providing acceptable traceability. Not every solution is noted here, however, the following describes what we look for when evaluating an obsolete part.

  1. Electronic material purchased from the original manufacturer will generally come with paperwork certifying the form, fit, function and that the product conforms to technical requirements. This document is usually signed by the Quality Manager. This traceability paperwork should remain in the box with the material and not be separated. Buyers, receiving, inspection and warehouse personnel can implement systems to manage the traceability document including scanning the document when it arrives in the building and keeping it in an easily accessible archive. When traceability documents are available, we keep these in digital PDF format readily available for retrieval.
  2. Microcircuits and semiconductors without traceability can be confirmed by a certified testing facility. A series of tests can be ordered including external visual inspection, physical dimension, marking permanency, internal visual inspection or  de-cap (removing the top of the part to view the component die inside),  X-Ray, XRF analysis, AC / DC functional electrical testing, date code verification, burn-in qualification, and solderability testing. Clients are encouraged to test within their own facility to protect intellectual property. This provides for comparing known good parts to the obsolete parts being screened.
  3. Offers to purchase excess surplus material should come with a request for all traceability documents. These are usually packing slips with the Quality Assurance stamp and signature of the Quality Assurance Manager. As an alternative, the Quality Assurance Manager at the facility selling the surplus material can provide a blanket certification for the lot of material referencing the purchase order numbers. When this material is resold in the market place, this traceability document can be provided to the buyer of the material.
  4. Acceptable traceability may be a document provided by the dealer or reseller that certifies the supply chain traceability back to the original manufacturer based on information received. In other words, trusted suppliers in the network state how the part came through the supply chain and that is documented for the buyer on a company statement or certificate. For example, we recently sold an item that did not have actual paperwork tracing back to the manufacturer. We purchased the surplus material from a defunct out of business supplier that previously sold parts to the DLA.  The supplier had sold the exact part from the exact lot on a previous contract to the DLA so we offer a traceability statement with our certificate of conformance because we know the supply chain intermediaries – the original manufacture who sold to the out of business distributor who sold to us. This traceability statement was satisfactory to that client.

Ultimately, when it comes to determining if a legacy part is indeed real and from the original manufacturer, the supplier will need to work with the buyer to provide acceptable traceability.  We want everyone to sleep at night knowing the best was done to protect the supply chain.

Dana Jiron
Inland Empire Components, Inc.


10 Ways To Identifying a Trusted Supplier

hands-1445472_960_720Finding a trustworthy and experienced supplier can be one of your most elusive purchasing challenges. In addition, suppliers play a key role in your ability to conduct business. It is to your benefit to develop strong supplier relationships.

Choosing the right supplier is crucial to business success. Good suppliers provide the right products and parts on time to specifications in the condition you ordered. They offer candid insight, make suggestions to improve your business, provide training, often provide terms, and provide you a relationship of trust and dependability.

Wrong suppliers, however, may impart upon you financial irregularities, counterfeit goods, and fly-by-night operations. Unfortunately, during times of market shortages, the electronic components industry attracts unscrupulous people and it is up to you to determine the credibility of your supplier.

When Inland Empire Components needs to qualify a vendor, we follow specific steps each time. The following steps are a few tricks we have honed over the years in order to motivate suppliers to do exactly what they say they are going to do.

The first step is to get your current supplier list into a database system so you can track who they are, what they sell, and rate their reliability. This doesn’t have to be an elaborate system. You can use Microsoft Excel, Access or some other contact management software to store the information. You want to be able to call, e-mail, fax and mail to your suppliers at will. In a perfect world, you should be able to look up your suppliers by name, manufacturer, part number, value-added services, etc.

We utilize a rating system with each of our suppliers. Our clients rely on us to provide quality products and services fast and we expect no less from our own suppliers. We measure suppliers on delivery, product quality and cost savings suggestions (CSS).

Before a supplier can sell to our company the firm must have the quality products and services we need and be able to deliver them on time. This criteria is challenging when procuring obsolete and end of life products.

Here are 10 ways to identify a trusted supplier and what we look for:

  1.  Review company references to confirm validity of the entity
  2.  Review the counterfeit mitigation plan and review the return policy
  3.  Identify the quality ratings on the online services and watchdog organizations
  4.  We look for suppliers who have a minimum five-year proven track record of success
  5.  Contact another supplier in the same region to get feedback, particularly if the  supplier is  overseas
  6.  We favor suppliers who have a third party certified quality management system
  7.  Review their website. If they don’t have one it can raise a red flag
  8.  Review Hoovers.com for company information
  9.  Request samples and pictures and ask for the traceability of the part if they have this documentation available
  10. Ask the supplier to provide a test report if it is available.Responsive suppliers will respond with good information and deliver quality product over and over again

About Inland Empire Components:

Established in 1989, Inland Empire Components, Inc. (IEC) is a known, liked and trusted provider of procurement solutions to the buyers and engineers at original equipment and contract manufacturers.

IEC distributes the electronic parts and materials needed to keep manufacturing lines from going down.  IEC specialized in challenging diminished supply chain solutions including spare parts, obsolete, hard-to-find procurement support for highly-allocated board-level electronic components as well as the commonly available or long lead time situations.

IEC provides a level of quality and service that exceeds the industry’s highest standards. With our local ESD compliant warehouse packed with millions of parts ready to ship today and billions more available from around the globe, IEC is recognized as a preferred vendor to some of the world’s largest OEMs and EMS Providers.

Contact Information:
Inland Empire Components, Inc. (IEC)

%d bloggers like this: