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.



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.

%d bloggers like this: