Tags

Recent Articles

DRAM pricing predicted to fall by 3-8% in 3Q22, says TrendForce

According to TrendForce research, despite the significance of peak season and rising DDR5 penetration, the 3Q22 DRAM market still succumbed to the negative impact of weak consumer electronics demand resulting from the Russian-Ukrainian war and high inflation, which in...

The five biggest MCU suppliers accounted for 82% of sales

Single-chip microcontrollers for embedded control and computing functions are ubiquitous and continue to be designed into more systems. MCU sales rebounded with a 27% increase in 2021 to a record-high $20.2 billion.  The 2021 surge was the highest percentage growth in...

Component prices continue to rise so prepare now – EPS

Jun 20, 2022

The electronic component shortage is likely to get worse before it gets better. As a result, electronics prices are on track to rise this year – and it may not be until late 2023 before prices begin to fall. That’s the view from Electronics Purchasing and Supply Chain News.

“Manufacturers should prepare now for future price increases, long lead times and ongoing supply chain challenges. Over the next few years, if price and lead time increases become the norm, JIT (just-in-time) manufacturing may become less and less viable. Instead, manufacturers may need to adopt a just-in-case business model, holding onto excess stocks and finished products in anticipation of long lead times and supply chain disruptions,” writes Emily Newton in EPS.

On average, electronic component prices rose by 5-40% in the past quarter, says the report. Lead times for these components have also increased. For example, microcontroller manufacturer Microchip has begun telling manufacturers to expect up to 50 weeks before order fulfilment. The company is also requiring new orders to be no cancel, no return (NCNR).

During the summer, higher price tags may cause electronics prices to increase even more later this year, writes Newton. “According to CNBC, the world’s biggest chip foundries, including TSMC, Samsung, and Intel, are considering price hikes due to inflation and the rising cost of chemicals and other raw materials.

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.

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