26 May 2021 -

Supply crunch means longer waiting for components

EE Times Asia’s Keesjan Engelen provides his insights on the shortages which are affecting the electronics industry and its impact on Asia’s electronics manufacturing scene.

“Component shortages are getting increasingly serious,” he says. “Voltage regulators that normally cost 50 cents have been selling for as much as $70. IC prices hiked up by 10x and lead times up to 52 weeks are not uncommon.

“Lower end ICs such as power management and microcontroller chips are experiencing the longest lead times as they are susceptible to both stockpiling and de-prioritization of capital allocation due to thinner margins. Many factories now have half their design staff dedicated to finding, and redesigning for, replacement components.”

The key contributing factors this situation are:

  • High demand for home office/electronic entertainment due to work-from-home.
  • EV cars contain much more ICs than conventional cars
  • Factories in China are stockpiling as they use 60% of the worlds IC, but only manufacture 16% domestically. Anxiety over supply ensued following Trump’s decision to forbid Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) from supplying to Huawei.

He concludes: “If you need anything manufactured this year, you better—try to—order your silicon now.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

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