Electronic Components: Allocation, Lead Times & Shortages

Handy Table Of Top 14 Major Manufacturers Lead Times - Updated 16th January 2012

2012-01-16T15:00:00.000Z

Lead times have largely remained the same, with some slight improvements to Altera, ST and Vishay. This is a promising start to 2012 and possibly a sign of the market recovering. I will continue to report on lead times affecting our industry as long as necessary. What seems like a stable market can unfortunately sometimes turn very quickly and as always I recommend planning ahead.
Here is my latest update on how manufacturer lead times are affecting the electronic component industry...

11 manufacturers lead times have remained the same, all under 30 weeks or on allocation

Altera lead times have decreased from 28 to 18 weeks.

ST lead times have decreased from 30 to 24 weeks.

Vishay lead times have decreased from 32 to 27 weeks.

Click here NOW to download the Manufacturer 'Lead Time' Table!

Thailand Flooding Update - 04/01/2012

2012-01-04T16:39:00.000Z

Last year, the electronics industry in Thailand faced two major crises. Firstly the Japanese tsunami indirectly caused widespread disruption to electronics production in Thailand. Component shortages led to worldwide problems in electronics manufacturing, but it had a particularly negative impact on Thailand which acts like a second home for Japanese electronics manufacturers.

Thailand faced even more problems when the region was hit by some of the worst flooding in its history. Since then the global market has seen shortages of hard disk drives and prices for I.T devices have risen.

Fabrinet's production facility in Chokchai has been cleared of flood waters however it is still unforeseeable as to when operations will resume. Inspections of the equipment and raw materials is ongoing. Fabrinet are the primary contract manufacturer for Opnext who expect the loss of production at the facility to have a significant impact on its ability to meet customer demands for the remainder of the financial year.

ROHM Semiconductor have announced that full operations at its facilities will resume ahead of schedule from January 1^st 2012. Some production has already begun as the company have invested heavily in alternative sites for production and the clean-up operations at the affected plants began as soon as the damage was incurred. Included here is a timeline of events that has been release by ROHM.

Flood timeline

ROHM Integrated Systems (Thailand) Co., Ltd.(RIST)
Monday, October 17	The levee surrounding Navanakom Industrial Park is breached, triggering an evacuation of all personnel except facility security personnel and some employees seconded from Japan.
Thursday, October 20	Floodwaters reach the plant.
Sunday, October 23	About 30 personnel are dispatched to begin removing some test boards, products, dies, and other equipment from the facility.
Wednesday, October 26	The facility begins deploying generators for lighting, facility maintenance, and other purposes.
Tuesday, November 8	Deployment of RIST employees in support of other ROHM Group manufacturing facilities begins.
Thursday, November 17	The power company begins supplying power on a temporary basis, and powering of manufacturing processes begins.
Saturday, November 26	Some production of ICs, transistors, diodes, and resistors resumes.
Saturday, December 10	Power is fully restored. Employee access to transportation for commuting to work resumes, and dormitories are reopened.
Tuesday, December 20	Officials plan to fully resume production on January 1, working primarily on the second and third floors.

The ToshibaSemiconductor plant in Pathumtani has also been reportedly been pumped dry of flood waters however the company is unable to predict when normal operations will resume at either of its affected facilities in the country.

More details can be found on the links below:

http://www.semicon.toshiba.co.jp/eng/event/news/1200765_7141.html

http://www.rohm.com/news/111221.html

http://evertiq.com/news/21169

Handy Table of Top 14 Manufacturers Lead Times Updated 15th December 2011

2011-12-15T16:00:00.004Z

Here is my latest update on how manufacturer lead times are affecting the electronic component industry...

12 manufactuers lead times have remained the same, all under 30 weeks or on allocation.
Altera lead times have increased from 18 weeks to 28 weeks.
Vishay lead times have increased from 26 weeks to 32 weeks.

The lead times of most manufacturers have stayed the same but with some up at 32 weeks or on allocation. I still believe we need to air on the side of caution, planning ahead is a must!
Click here NOW todownload the Manufacturer 'Lead Time' Table!

Thailand Flooding Update - 13/12/2011

2011-12-13T09:01:00.000Z

Western Digital restarted production of hard drives last week at one of its facilities in Bang Pa-in. The facility went out of action on October 15^th and wasn't dry until November 17^th. Power was restored to the facility and the recommencement of operations at the plant happened on the 30^th November. The companies other facility in Navanakorn remains under 2 ft of water and is expected to be pumped dry within the next ten days. At which time the clean up and refurbishment can begin.

CEO of Western Digital, John Coyne has said, "the passion, perseverance, ingenuity and execution exhibited by the WD team has been extraordinary and enabled us to make substantial progress in partially restoring our operations in Thailand, well in advance of our earliest expectations when the floods hit.”

It is expected that the company will still suffer from serious industrial supply chain issues. With many areas in the country still badly affected. This is having an impact on component supply and logistics.

The total cost of the flooding in the December quarter could cost Western Digital upto $275 Million. The company is expected to file a claim for property damage of up to $50 Million.

More information can be found on the original article:

http://evertiq.com/news/21006

Thailand Flooding Update - 25/11/11

2011-11-25T16:16:00.000Z

We have more information on the crisis in Thailand and how it pertains to the electronics manufacturing industry.

ROHM Semiconductor have issued an updated press release which confirms that the production facility in the Navanakorn Industrial Zone which is in the Pathum Thani province has been out of operation since October 15^th. The schedule of recommencement of activities at this facility is so far unknown.

The update also includes information on the LAPIS Semiconductor plant in the Ayutthaya province. This plant has also been confirmed to have suspended production on the 8^th October with no recommencement date established. To read the original press release please click here.

Western Digital have released updated information on the status of its operations in Thailand. Both its factories in the Navanakorn and Bang Pa-In industrial estates north of Bangkok. These facilities employ a total of approximately 37,000 people who have all been reported to be safe although many have been “severely impacted.” The company believe that factors such as logistical infrastructure and component availability will have an effect on HDD prices. More information on the recovery efforts are expected towards the end of the year. The full update can be read here.

Handy Table of Top 14 Manufacturers Lead Times Updated 24th November 2011

2011-11-24T15:30:00.001Z

Once again we have seen a variety of changes to lead times this month which indicates just how volatile the market is. Here is my latest update on how manufacturer lead times are affecting the electronic component industry...

Atmel lead times have increased from 16 to 24 weeks.

ST lead times have increased from 24 to 30 weeks.

10 manufacturers have remained stable.

Fairchild Semiconductor lead times have decreased from 40 to 28 weeks.

Samsung lead times have decreased from 12 to 18 weeks.

Click here NOW to download the Manufacturer 'Lead Time' Table!

We have 91,603 line items held within our own stock here in York, England. To check availability online using our fast component search facility, click here NOW!

Here are our top 7 manufacturers we are seeing orders on...

Fujitsu
Infineon
International Rectifier
On Semi
ROHM
Seagate
Toshiba

If we do not show parts in our stock, send us your enquiry and we will source it for you.

HDD Prices Soar In Aftermath Of Thailand Flooding

2011-11-18T16:21:00.000Z

Since 45% of Hard Disk Drive production takes place in Thailand, it is understandable that the disruption to production in the wake of the flooding will have a global knock on effect.

All of the HDD manufacturers in Thailand have had disruptions to their operations to some scale. Western Digital's facility was completely flooded to the first floor and they still have no electricity. They have been unable to gauge the full extent of the damage to the equipment but it is believed to be severe. IDC predict that up to 75% of Western Digital's production operations could be temporarily shut down. This would mean the company losing its position as the largest producer of HDD's in the world.

Seagate have also seen major disruptions. While their building remains untouched by flood waters, they still have to contend with a lack of electricity. Generators have been brought in to power air conditioning units which should stem the rusting of equipment due to the high humidity levels. Seagate also have to worry about disruption to their supply chain. While their building escaped flood damage, many of their component suppliers have been flooded out and the logistical infrastructure of many manufacturers has been interrupted. Roads and railways across the country have been flooded making it harder for clean up equipment to get through.

The disruption to production of Hard Disk Drives means that there will be an inevitable shortage of these parts over the next few months. "You'll start to see PC makers increase prices for some products. So indirectly, consumers will face some higher prices because of higher HDD prices," said John Rydning, a vice president of research at IDC. He also stated that, "we generally believe the HDD industry will find a way to return to pre-flood production levels by March, but by that point HDD supplies will be at extremely low levels, it's still going to be a pretty painful period from December through February for most HDD customers."

PC and laptop manufacturers will be forced to increase prices and also look for alternatives to HDD's. The most likely replacements are Solid State Drives (SSD's) which are generally more expensive than standard HDD's but may prove more economical in the months to come. At Cyclops we will always do our best to ensure that we can source the best options available for all of our manufacturers.

To read the original article please follow the link:

http://www.pcadvisor.co.uk/features/pc-components/3318503/thai-floods-lead-surge-in-uk-pc-prices/

Thailand Flooding Update - 03/11/11

2011-11-03T11:56:00.001Z

We have several updates on the ongoing flood crisis in Thailand and its impact on the electronics manufacturing industry.

IHS posted an update on their website about the affects that the flooding is having on the HDD industry. IHS estimate that 30% of HDD production will be lost in the fourth quarter of 2011 due to the disaster. This could naturally have a knock on effect in other industries such as PC and laptop production as we move into 2012. The shortage is as a result of the suspension of operations at major HDD manufacturers in Thailand, mainly Western Digital and Toshiba Corp. IHS predict that HDD prices will rise by 10% compared to their value in the third quarter of 2011. The full report from IHS is available here. Thailand Flood Update

IHS also released a presentation called "Thailand Flood and its Ripple Effect", in this presentation they reported that 14,000 facilities had been impacted as a result of the floods. The supply chains of many industries had been disrupted including; automotive production, analog IC & discrete semiconductor production, HDD assembly and general electronics manufacturing including PC's, laptops and digital cameras. The presentation is available from us on request, please email marketing@cyclops-electronics.com

Toshiba have also been forced to suspend operations at its manufacturing facility in the Bangkadi Industrial Park, Pathumtani. This facility is responsible for the production of discrete devices. Toshiba announced on their website that alternative production had begun at other facilities, however the production volume and number of products will be limited due to restricted capacity. The full press release is available from the Toshiba Website.

TDK also suspended production at their facilities in Thailand. Two of the facilities in the Rojana District have suffered damage, the extent of which is currently unkown. Two more facilities in the Wang Noi district have also suspended operations as a precaution to ensure the safety of staff. As of yet these facilities have not suffered any damage. More information can be found on the TDK website.

Thailand Flooding Update

2011-10-26T16:49:00.001+01:00

On Semiconductor have confirmed that there hasn't been any on-site injuries to any employees, however the company believes that the facility has suffered severe damage and does not yet know the full extent. Please click here to read more...

ROHM have issued a press release stating that flood-waters have started to penetrate 2 of their manufacturing facilities in Thailand. They are currently making preparations for alternate production at other locations. Please click here to read more...

Microsemi have stated that ongoing flooding in the country has now forced a shut down of operations at 2 subcontracted facilities. Please click here to read more...

Western Digital have announced that it has extended the suspension of its operations in Thailand due to rising flood water. Please click here to read more...

On Semiconductor Expect To Be Out Of Action In Thailand “Indefinitely”

2011-10-26T16:07:00.000+01:00

There has been more bad news for On Semiconductor's manufacturing operations in Thailand following the widespread flooding that has spread across the country. The last time we received an update from On Semiconductor, we learned that operations in the facility at the Rojana Industrial Park in Ayutthaya, had been forced to suspend all activities as a result of the flooding.

On Semiconductor have confirmed that there have still been no on-site injuries to any employees, however the company believes that the facility has suffered severe damage. The premises remains inaccessible though and therefore the full extent of the damage is still unknown. According to the news page on the On Semiconductor website, the facility could remain closed “indefinitely.”

Plans have been made to shift operations to other facilities, from the final quarter of 2011, On Semiconductor expects to be able to move some assembly and testing operations of certain products to other facilities, while more complicated operations could take several quarters to be restored to full productivity.

In the last update from On Semiconductor, we were told that as of yet, the second facility in Thailand at Bang Pa In had so far been unaffected. Unfortunately this is no longer the case as the company have now also reported the suspension of operations at the second site and the Thai government has ordered a full evacuation of the industrial park where these operations are based.

To read the full news article from On Semiconductor you can view it here:

http://www.onsemi.com/PowerSolutions/newsItem.do?article=2623

National Products From Texas Instruments

2011-10-20T14:09:00.003+01:00

Following the news of the acquisition of National Semiconductor by Texas Instruments, we have updates on the immediate affects of the takeover.

Firstly, all National Products will now feature on the Texas Instruments website, including datasheets, applications and products folders. All part numbers are to remain the same except for those few part numbers that are identical, the National part number will be noted with a "N" after the part number.

Texas Instruments have stated that they will not obsolete any parts, as “customers have chosen those parts for a reason, and we want customers to keep choosing them.” TI also stated that there would be no changes to pricing as a result of the acquisition, however fluctuating market demands may lead to price changes.

To read the full article please click here:

http://www.ti.com/ww/en/more/faq.shtml

Handy Table of Top 14 Manufacturers Lead Times Updated 20th October 2011

2011-10-20T11:00:00.010+01:00

In general the average manufacturer lead times have made some improvements and are starting to become stable again.

Intriguingly IHS iSuppli have recently reported, 'Discrete components finally get some lead-time relief' and that their lead times are dropping from the 20+ week level. However, our sources show that there are still a few discrete component manufacturers remaining at 24 or even 40 week lead times. Have IHSiSuppli spotted a change in the trend or is it a short term response to the recent lack of consumer confidence?

As a whole the discrete component lead times are getting better but there is still the odd manufacturer with high lead times to watch out for. It is also worth noting that in some discrete segments IHS iSuppli have reported that growing interest in the energy saving sectors will continue to fuel discrete component demand.

Here is my latest update on how manufacturer lead times are affecting the electronic component industry lately...

8 manufacturers have decreased since last months check...Altera, Cypress, Fujitsu, Infineon, National Products From TI (formally National Semiconductor), ON Semiconductor, ST and Vishay.
5 manufacturers have remained the same since last months check.
Texas Instruments have increased from 16 weeks to 30 weeks.

Click here NOW to download the Manufacturer'Lead Time' Table.

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

Microsemi Corporation Acquires Zarlink Semiconductor Inc

2011-10-19T17:21:00.000+01:00

On the 13^th October 2011, it was announced that Zarlink Semiconductor has been acquired by Microsemi in a takeover which means that Zarlink Semiconductor will now operate as a subsidiary of Microsemi.

Microsemi currently manufactures semiconductors for the defence, aerospace, and security industries as well as the alternative energy market. Products include high-performance, high-reliability RF and analog devices, customizable SoCs, FPGAs, mixed-signal and RF integrated circuits.

"We are pleased to announce our success in this tender offer process. As a result, Microsemi assumes control of this business and intends to move swiftly with driving the business forward for our stakeholders," said James Peterson, Microsemi president and CEO. "We are anxious to begin capitalizing on the technology capabilities, talented technical team, product roadmap and revenue growth opportunities that this acquisition brings to Microsemi."

For more information you can view the original press release here:

http://www.marketwire.com/press-release/microsemi-corporation-announces-successful-completion-acquisition-zarlink-semiconductor-nasdaq-mscc-1572522.htm

SANYO Semiconductor Affected By Thailand Flooding

2011-10-18T11:29:00.000+01:00

S ince July, Thailand has experienced widespread flooding across the country, but in the past month the flooding has become much more severe and now 61 out of 77 of the countries provinces have been affected. Thailand is a leading manufacturer of electronic and automotive products and many businesses have suffered long disruptions. SANYO Semiconductor, which in January became a part of ON Semiconductor, has been forced to suspend all operations due to its site being hit by the flooding.

There have been no “on-site” injuries at the Rojana Industrial Park in Ayutthaya where SANYO Semiconductors operations are based. The CEO of ON Semiconductor, Keith Jackson, said “Our first priority is the personal safety and well being of those impacted by the flood. We continue to asses the impact to our operations in the Rojana Industrial Park, and we are working to identify options for shifting the production to other facilities.”

It is so far unknown how long the facility will be out of action or the amount of damage taken by the equipment and the building. The facility, used for SANYO's wafer probe, assembly and test operations, is located approximately 70 km north of Bangkok and normally accounts for around 5 to 10 percent of ON Semiconductors global productions. The other On Semiconductor facility in “Bang Pa In” has, so far, remained unaffected by the floods.

Read the full stories here:

http://www.supplymanagement.com/news/2011/thailand-flooding-causes-supply-chain-disruption/

http://evertiq.com/news/20572

Texas Instruments Acquires National Semiconductor

2011-09-28T10:30:00.003+01:00

Analog chip manufacturer National Semiconductor have been bought out by Texas Instruments in a corporate merger, reportedly worth $6.5 Billion. The deal which was first announced in April, means that the new extended TI will now have a sales force which is “ten times” the size of what it was and the company will have a products catalogue with over 45,000 line items.

The takeover will grant Texas Instrument's a much larger market share. Potentially 17 to 18 % of the market could be up for grabs. The CEO of Texas Instruments, Rich Templeton, said “together, they're focused on accelerating semiconductor innovation to improve performance and power efficiency for their customers' electronic systems.”

There are no indications thus far as to whether the takeover will have an impact on component lead times from either of the manufacturers. Only time will tell.

Please read the original articles here:

http://microelectronics.cbronline.com/news/ti-acquires-national-semiconductor-260911

http://www.engadget.com/2011/09/25/texas-instruments-wraps-up-purchase-of-national-semiconductor/

http://news.cnet.com/8301-31021_3-20050600-260.html

Handy Table of Top 14 Manufacturers Lead Times Updated 16th September 2011

2011-09-16T11:57:00.029+01:00

Here is my latest update on how manufacturer lead times are affecting the electronic component industry lately...

ON Semiconductor lead times have increased from 20 weeks to 28 weeks.

Fujitsu lead times have increased from 20 weeks to 22 weeks.

7 manufacturers lead times have remained stable.

Atmel lead times have decreased from 26 weeks to 16 weeks.

Cypress lead times have decreased from 25 weeks to 24 weeks.

Freescale Semiconductor is no longer on allocation and has a 24 week lead time.

Texas Instruments have decreased from 30 weeks to 16 weeks.

Infineon lead times have decreased from 30 weeks to 28 weeks.

Click here NOW to download the Manufacturer 'Lead Time' Table.

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 19th August 2011

2011-08-19T12:45:00.005+01:00

Here is my latest update on how manufacturer lead times are affecting the electronic component industry lately...

12 manufacturers lead times have remained stable.

Fairchild Semiconductor lead times have decreased from 50 weeks to 40 weeks, which is a really positive sign as they have consecutively reduced over the last 2 months.

ON Semiconductor lead times have decreased from 28 weeks to 20 weeks.

Infineon lead times have increased from 28 weeks to 30 weeks.

Click here NOW to download the Manufacturer 'Lead Time' Table.

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

OEMs To Spend More On Semiconductors For Wireless Than For Computers In 2011

2011-08-19T12:11:00.013+01:00

In a recent IHS iSuppli article by Wenlie Ye, I have found the following statements interesting...

"Not only will wireless be the leading category for semiconductor spending in 2011, wireless will also expand its lead in 2012 as the high-technology market increases its focus on mobile, Internet-connected devices. Led by Apple Inc.'s iPhone and iPad, demand is booming for smart phones and tablet devices. This is spurring a surge in sales of semiconductors used in wireless devices, including baseband chips, applications processors and mobile memory."

This unexpected growth for wireless segment electronic components may be linked to why manufacturers are struggling to keep up with demand, which ultimately increases manufacturer lead times?

This is also another sign of consumer spending changing and the technology industry's shift towards more mobile communications rather than the usual PCs.

"During the past few years, the wireless and computer segments were engaged in a seesaw battle for leadership in OEM semiconductor spending. However, the shift in the market focus towards mobile platforms, and the limited growth potential of the computer market, means that wireless is set to remain the top OEM semiconductor segment for the foreseeable future."

What do you think? Please click here to read the article NOW!

If you have any comments please leave below or alternatively email blog@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 15th July 2011

2011-07-15T15:34:00.008+01:00

I wanted to keep you updated on how manufacturer lead times are affecting the electronic component industry lately.As I mentioned last month, lead times have largely remained the same, with one slight improvement but one key player extending their lead times by over 35%...

12 Manufacturers lead times have remained stable.
Fairchild Semiconductor lead times have decreased from 51 weeks to 50 weeks.
Altera lead times have increased from 16 weeks to 22 weeks.

This stasis has allowed OEM's and CEM's, at least, to plan production or seek viable alternatives. However, this month one key player, Altera, has bucked the trend.

In a move that is sure to alarm those relying on electronic component delivery times, the ability of OEM's and CEM's to rely on such lead times as we face, from other manufacturers, must be questioned.

Purchasers need to ensure that suppliers of electronic components are willing to go the extra mile to meet their commitments.

Click here NOW to download the Manufacturer 'Lead Time' Table.

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

Rising Fuel Prices & Commodity Shortages Only Temporary For US Supply Chains?

2011-06-11T17:12:00.062+01:00

It has recently been reported that rising fuel prices and commodity shortages have hit the US supply chains. Many analysts are expecting these to be only temporary weaknesses.

Since the recession ended electronics manufacturing has become one of the strongest growing areas...

"Manufacturing has been one of the strongest areas of the economy since the recession ended. But it has shown signs of slowing in recent months. On Wednesday the Institute of Supply Management reported that its index of manufacturing activity expanded in May at the slowest pace in 20 months." States Martin Crutsinger, The Associated Press.

I believe that the unexpected 'slow down' of manufacturing is due to the unpredictable circumstances that occurred in Japan. Japan produce many electronic components used within a wide ranges of electronic devices. A combination of temporary factory closures, black-outs and disruptions caused by the Japanese earthquake has majorly impacted on production lines world-wide. Now, three months on, we are starting to see disruptions rectified and the industry is working together to help minimise any future delays. Scheduled ordering, proactive communications, investing in electronic component inventory and becoming more 'lean', have all assisted in helping overcome disruptions quickly.

Source: http://www.google.com/hostednews/ap/article/ALeqM5hlntqvk9twbtPIxfllwBo_AsEZUA

If you have any comments please leave below or alternatively email blog@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 10th June 2011

2011-06-10T12:59:00.010+01:00

I wanted to keep you updated on how manufacturer lead times have affected the electronic component industry lately.

Click here NOW to download the Manufacturer 'Lead Time' Table.

Over the last month we have seen the following changes to manufacturers' lead times within the electronic component industry.

10 Manufacturers lead times have remained stable.
Altera lead times have decreased from 26 weeks to 16 weeks.
Infineon lead times have decreased from 36 weeks to 28 weeks.
ON Semiconductor lead times have decreased from 35 weeks to 28 weeks.
Vishay lead times have decreased from 40 weeks to 30 weeks.

Interestingly the majority of lead times have either stayed stable or decreased which shows a massive sign of improvement.

This is surprising as the electronic component industry has had a roller-coaster ride over the last couple of years. First there was the economic crisis, followed by supply chain disruptions after the horrific natural disaster in Japan.

I feel the electronic component industry has worked together and is continuing to help minimise the impact of disruptions through scheduled ordering, proactive communications, increased electronic component inventory from distributors and many manufacturers incorporating more 'lean' methods of production.

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

Has Your Electronic Supply Chain Been Affected By Japanese Disaster?

2011-06-01T17:14:00.015+01:00

A recent poll conducted by Evertiq found that 64.4% of people questioned stated that their supply chains have been affected by the recent natural and nuclear disasters in Japan.

For more information please click here NOW to read the article.

If you have any comments please leave below or alternatively email blog@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 13th May 2011

2011-05-13T16:03:00.003+01:00

7 manufacturers have remained stable.
Cypress lead times have increased from 18 weeks to 25 weeks.
Infineon lead times have increased from 28 weeks to 36 weeks.
ON Semiconductor lead times have increased from 28 weeks to 35 weeks.
Vishay lead times have increased from 38 weeks to 40 weeks.
Freescale Semiconductor lead times have decreased from 36 weeks to 24 weeks, but with some product groups now entering allocation.
Fujitsu lead times have remained at 20 weeks, but with some product groups now entering allocation.
Samsung lead times have decreased from 14 weeks to 12 weeks and some product groups remain on allocation.

It has been an eventful year so far with raw material prices rising, the tragic events in Japan and the conflict in the middle east. Due to the uncertain climate, manufacturers' lead times remain unpredictable and are showing no indication of immediate improvement.

Hopefully, the next coming months will provide an interesting outlook for all electronic industry professionals and ramifications will become a lot clearer...only time will tell!

However, we can only recommend to plan ahead wherever possible and start to think about your future production requirements. Cyclops can offer you a Scheduling Service to help assist you in overcoming long lead times, for more information please click here NOW!

If anyone has any comments on the recent changes and updates do remember to let me know, email blog@cyclops-electronics.com.

Parts & Labour Shortages Impacting On iPhone & iPad Production

2011-05-12T18:08:00.010+01:00

It has been an eventful year so far with raw material prices rising, the tragic events in Japan and the conflict in the middle east. Due to the uncertain climate we are seeing many reports on how the shortage of both electronic components and labour resources at many manufacturers' could be impacting on the supply of the many gadgets, such as Apple iPhones and iPads.

An article on Digitimes, comments on Taiwan-based electronics manufacturing service (EMS) provider Foxconn Electronics situation...

"Japan's earthquake seriously impacted component supplies such as power amplifiers and memory to the plants, while the plants' labour is also falling short, supplies of iPad 2 are still mainly from its plants in Shenzehn. As a result, Foxconn may have difficulty in satisfying Apple's demand for supplying an average of 2.5-3 million units of iPad 2 each month in the second quarter."

Also in another recent article from Digitimes, sources from upstream component players commented on how electronic component shortages maybe emerging...

"Several component suppliers are already close to having shortages with the real challenge expected to hit in June. The shortage crisis is also expected to bring issues such as rising costs and an increased rate of defective products in the future."

These are two articles that show the electronic component supply issues impacting on a number of major manufacturers, in particular those relating to smartphones and tablets. However on a positive note, Digitimes also stated that most smartphone/tablet makers have been "working on stocking their component inventory behind the scenes". So many are more prepared for any unexpected shortages which should reduce the 'major panic buying' that usually comes with electronic component shortages.

If anyone has any comments please leave below or email blog@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 14th April 2011

2011-04-14T16:47:00.003+01:00

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note the following changes to manufacturers' lead times within the electronic component industry:

Samsung lead times have decreased from 20 weeks to 14 weeks.
Vishay lead times have decreased from 40 weeks to 38 weeks.
10 manufacturers' lead times have remained stable since the last months check.
Altera lead times have increased from 20 weeks to 26 weeks.
Freescale lead times have increased from 26 weeks to 36 weeks.

This shows that the market is still quite unpredictable at this current time. Take a look at the table and let me know what you think!

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Texas Instruments Agrees To Acquire National Semiconductors...

2011-04-04T15:48:00.003+01:00

I have found a really interesting press release regarding the recent merge of two leading manufacturers of analog semiconductors...

"Texas Instruments Incorporated has signed a definitive agreement with National Semiconductor under which TI will acquire National for $25 per share in an all-cash transaction of about $6.5 billion. The acquisition combines two industry leaders in analog semiconductors and the boards of directors of both companies have unanimously approved the transaction."

Click here to read the press release.

If you have any comments or questions please leave them below or alternatively email blog@cyclops-electronics.com.

Leading IHS iSuppli Experts Examine Impact of Japan Earthquake on Electronics, Friday 1st April 2011 Webinar

2011-03-31T12:35:00.003+01:00

I have found an interesting webinar which plans to discuss the disaster's impact on the global electronic component supply chain....

Leading IHS iSuppli Experts Examine Impact of Japan Earthquake on Electronics, Friday 1st April 2011 Webinar 8:00 a.m. U.S. Pacific Daylight Time.

“From semiconductors to displays, to automotive and consumer electronics, the effects of the Japan earthquake continue to reverberate throughout the world,” said Dale Ford, senior vice president, market intelligence, at IHS. “Beyond the damage to Japan’s own industrial base, the earthquake has impacted the production of basic electronic raw materials, such as silicon wafers used to make semiconductors, creating a ripple effect throughout the globe. For any participant in the worldwide electronics supply chain, the IHS iSuppli Japan webinar will provide essential information required to manage through the fallout of the Japan crisis across the supply chain during the next three, six and 12 months.”

I think this will be really beneficial to attend as it will highlight how our market has been effected and current challenges facing companies inside of Japan as they struggle to get back up and running.

Click here for more information and how to sign up to the webinar NOW!
Source: http://www.isuppli.com

Japanese earthquake and Tsunami Update...

2011-03-17T17:34:00.049Z

Here are more electronic component manufacturer statements regarding the Japanese earthquake and Tsunami...

AVX: http://www.avx.com/
CEL: http://www.cel.com/earthquake.do?command=view
Diodes, Inc.: http://www.diodes.com/
DMC Co. Ltd.: http://www.dmccoltd.com/english/index.asp
Epcos: http://www.epcos.com/web/generator/Web/Sections/Home/JP/Statement,locale=en.html
Epson: http://www.epson-electronics.de/cgi-bin/panamafe/panama/demand/home.do
Everlight Electronics: http://www.everlight.com/
Fujitsu: http://www.fujitsu.com
Kyocera: http://global.kyocera.com/
Molex: http://www.molex.com/mx_upload/editorial/910/20110314_japan.pdf
Murata Manufacturing Co. Ltd: http://www.murata.com/
National Semiconductor: http://www.national.com/analog/company
Nichicon: http://www.nichicon.co.jp/english/topics/pdf/news20110317_en.pdf
Omron: http://www.omron.com/media/press/2011/03/c0315.html
On Semiconductor: http://www.onsemi.com/PowerSolutions/content.do?id=16832
Panasonic: http://www.panasonic.com/
Pericom: http://www.pericom.com/
Renesas: http://am.renesas.com/press/notices/notice20110328b.html
Spansion: http://investor.spansion.com/phoenix.zhtml?c=189782&p=irol-newsArticle&ID=1539288&highlight=
TDK: http://www.tdk.co.jp/tetop01/index.htm
Texas Instruments: http://www.ti.com/
Toshiba: http://www.semicon.toshiba.co.jp/eng/event/news/1189934_7141.html

Source: http://www.arrow.com/media_center/news_2011/JapaneseEarthquake.html

Tragic Japan Earthquake Affects Some Electronic Semiconductor Manufacturing Facilities

2011-03-14T15:39:00.046Z

Our deepest condolences go out to the people of Japan following the tragic earthquake that struck northern Japan on 11th March 2011. The earthquake measured 8.9-magnitude on the Richter scale and they are now experiencing subsequent tidal waves (tsunami) throughout the country.

Electronic component manufacturers' have started to assess the damages to their electronic manufacturing facilities, after preliminary assessments they have reported the following:

Texas Instruments
The manufacturing site in Miho, Japan, about 40 miles northeast of Tokyo, suffered substantial damage. The fab. in Aizu-wakamatsu, about 150 miles north of Tokyo, was also damaged in the earthquake, equipment here is already being re-started. The company's third fab. in Hiki, about 50 miles south of Tokyo, was undamaged and is currently running at normal capacity. For more information please click here...
Molex
Have reported its employees in Japan were safe and that none of its three facilities were damaged in the massive earthquake. For more information please click here...

Murata
Employees have left the worksite and operation has been stopped. Murata will inform as soon as the restoration situation has been confirmed. There is no tsunami damage. For more information please click here...
Sony Group
Operations at several Sony Corporation and Sony Group sites and facilities have been affected by the Pacific Coast of Tohoku Earthquake and tsunami. Sony has responded to reports of widespread power outages by voluntarily suspending operations at several sites. No significant injuries have been reported to employees working at these sites when the earthquake or tsunami occurred. For more information please click here...
ROHM
Operations at the OKI Semiconductor Miyagi facilities and ROHM Tsukuba facilities have been stopped as of 11:00am 13th March because of infrastructure supply problems. For more information please click here...

Renesas
The Renesas Group have confirmed that seven out of 22 factories in Japan have temporarily shut down production. For more information please click here...

Toshiba
Toshiba to scale back activities, cut power consumption in response to earthquakes, For more information please click here...

ON Semiconductor
ON Semiconductor is currently working to assess the impact to its employees and facilities both in Japan and affected areas. For more information please click here...

Although the overall semiconductor production hasn't been severely damaged on first inspection as first thought, analysts are predicting that the material supply and basic traffic reconstruction will impact more on the supply of semiconductor than production line damage. Therefore the overall supply is expected to be affected for the next two weeks due to unforeseen traffic difficulties. Source - www.evertiq.com/news/19130.

If anyone has any comments or views please make them below or email blog@cyclops-electronics.com.

There is a helpline for anyone in the UK worried about friends or relatives in Japan affected by the earthquake and tsunami: ++44 (0) 20 7008 0000.

**Disclaimer**
Information within this blog post is subject to change without any prior notice.

Handy Table of Top 14 Manufacturers Lead Times Updated 14th March 2011

2011-03-14T09:34:00.002Z

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note the following changes to manufacturers' lead times within the electronic component industry:

Cypress lead times have decreased from 22 weeks to 18 weeks.
Freescale Semiconductor lead times have decreased from 34 weeks to 26 weeks.
Infineon lead times have decreased from 30 weeks to 28 weeks,
10 manufacturers' lead times have remained stable since the last months check.
Texas Instruments lead times have increased from 24 weeks to 30 weeks.

Interestingly the majority of lead times have either stayed stable or decreased which shows signs of improvement. However, as Texas Instruments lead times have increased and Fairchild Semiconductor lead times still remain at 51 weeks, this indicates that although there is improvement it is at a slow pace.

Take a look at the table and let me know what you think!

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Several Manufacturers Of Electronic Components Increase Prices From 1st April 2011

2011-02-11T14:04:00.003Z

I wanted to update my valued blog readers on important information regarding electronic component pricing!

We have been advised by several manufacturers that they will be increasing prices from the 1st April 2011 due to increased raw material costs globally. Please click here for an interesting announcement from one of the manufacturers.

However do not be alarmed!

Remember if you place orders before 1st April and utilise the Cyclops Scheduling Service, you will keep your electronic component costs to a minimum and avoid any price increases before it's too late! Not only this you will not experience hefty lead times hindering your manufacturing processes when allocation and shortages hit the electronic component market unexpectedly, which seems to be very unpredictable at the moment!

We will accept scheduled orders up to 18 months in advance, securing your costs to an absolute minimum and ensuring you the ability to call in your stock as and when you require it.

For more information on the Cyclops Scheduling Service please click here NOW!

What do you think? email marketing@cyclops-electronics.com and let me know your thoughts and comments.

"Very Strong" 2011 for ICs & Double Digit Boom In 2012...Schedule Now To Make Substantial Cost Savings!

2011-02-01T16:28:00.001Z

I have recently read an interesting article regarding the recent Future Horizons January Semiconductor Report which stated 2011 will be a very strong year for the chip industry, and 2012 will be a double-digit boom.

"Shortages are everywhere...from substrates (e.g. 200mm wafers), equipment (try buying an immersion stepper or single wafer epi reactor), to lead frames (especially given the desire to move from gold to copper-based packaging). Industrial and automotive products are now completely sold out, even memories are starting to get tight."

As the capacity of electronic components within the market remains tight, even more electronic components are selling out fast. This means higher lead times, low excess inventories and increased pricing.

A way to overcome unforeseen shortages and increased prices would be to schedule your purchasing of electronic components for the next year, always staying one step ahead.

The benefits of scheduling your electronic component purchasing requirements should ultimately boost manufacturing productivity and capacity utilisation, by having the parts readily available as and when you require them and of course...make you substantial cost savings!

What do you think? email marketing@cyclops-electronics.com and let me know your thoughts and comments.

To read the full article please click here NOW!

Handy Table of Top 14 Manufacturers Lead Times Updated 21st January 2011

2011-01-21T10:39:00.017Z

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note the following changes to manufacturers' lead times within the electronic component industry:

Vishay is the only manufacturer that has increased lead times from 38 weeks to 40 weeks.
Fairchild Semiconductor lead times have decreased but still sit at 51 weeks.
Altera lead times have decreased from 28 weeks to 20 weeks.
11 manufacturers' lead times have remained stable since the last month's check, but some are still as high as 34 weeks!

Take a look at the table and let me know what you think! If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

2011 May See Industry Rush To Offer Tablets That Compete With Apple's iPad...Will This Cause Unwanted Disruptions?

2011-01-19T16:24:00.001Z

According to recent iSuppli research conducted earlier this month...

"The technology industry's rush to offer tablets that compete with Apple Inc.'s iPad will cause disruptions in the global display industry this year, generating both shortages and excess inventories, as display makers attempt to satisfy booming demand from their tablet customers."

Yet again I advise that all parties should proceed with caution as the tablet market is so new and volumes at this stage are simply unpredictable.

Tablet devices, such as the iPad, are used within a variety of different industries such as; education, healthcare, retail, government, etc. As there seems to be 'no stopping' the demand suppliers are forced to gamble, forecasting extremely high projections throughout 2011. Unfortunately this may bring with it significant inventory shortages as electronic component demand will be very high. This may then lead to possible excess electronic component inventories occurring for many manufacturers, especially if high forecasting has been implemented and the demand/production levels fall.

What do you think? email marketing@cyclops-electronics.com and let me know your thoughts and comments.

To read the full iSuppli article please click here NOW!

Electronic Components Bumpy Road To Improving Lead Times

2011-01-14T14:04:00.000Z

I have recently read an article that stated...

"Component manufacturers sliced capacity beginning in 2008 when the economy began to slip. They are not likely to rush into capacity investment before they're sure of sustained demand."

With many uncertainties looming across the electronic component market it is not surprising companies are having to continually justify their spend on new electronic component inventory; with regards to hitting the balance between demand and supply for 2011 and beyond. This means that many companies will proceed with extra vigilance before making investments into new inventory.

So, if people are proceeding with caution will this mean that the market will take longer to recover with regards to lead times and availability?.... honest answer, no-one really knows!

However if the electronic component industry as a whole creates more awareness of the situation and starts to see the demand and supply more balanced, then perhaps the market may recover quicker.

To help overcome this uncertainties I recommend it is best to plan ahead and stay vigilant of the market trends at this current time. Check out the latest Handy Table Of Top 14 Major Manufacturers, click here NOW!

In 2011 The Electronics Industry Is Set To Be Stable... Proceed With Caution!

2011-01-09T18:15:00.003Z

Analysts are predicting that the opportunities from media tablets and the smartphone craze should help keep the electronics industry from the recent downturn we have gone through.

After reading an article from iSuppli it is clear that there is still a high degree of uncertainty within the electronics market and people are still remaining cautious. However the growth within application products is keeping the electronics market stable.

According to Dale Ford, senior VP for market intelligence services at iSuppli Corp, "While semiconductor revenue growth is expected to continue in 2011, the factors that drove the growth in 2010 will loose their potency next year. As a result, iSuppli expects a 'soft landing' for the semiconductor industry in 2011."

To read the article please click here NOW!

Lead Times For Tantalum Capacitors Starting To Show Decline

2011-01-07T14:52:00.000Z

I have just read an interesting article regarding tantalum capacitor lead times...

According to Dennis M.Zogb, president and owner of the Paumanok Group, lead times for tantalum capacitors as a whole showed a 4.05% decline on a month-to-month basis. He writes "We probably face the unique situation of declining lead times and rising prices, not only for tantalum but for many components that employ industrial dual use rare earths, metals and plastics."

As he suggests in the article the raw materials supply may be extremely tight for the first half of 2011, possibly longer. So to avoid drastic price increases I recommend to start planning your electronic component purchasing as soon as possible.

To view the article please click here NOW!

Seasons Greetings Electronic Component Industry From All At Cyclops

2010-12-24T10:11:00.000Z

Thank you for your continued support throughout the year. We wish you well over the holiday season and New Year celebrations.

The Cyclops Group will be closed for the holiday season from Friday 24th December 2010, reopening in the New Year on Tuesday 4th January 2011.

We will be ready and waiting to receive your requirements as normal and look forward to a busy and prosperous New Year.

Warmest Regards

From all at Cyclops

Email:   marketing@cyclops-electronics.com
Web:     www.cyclops-electronics.com
Phone: ++44 (0) 1904 415 415
Fax:      ++44 (0) 1904 424 424

Handy Table of Top 14 Manufacturers Lead Times Updated 14th December 2010

2010-12-14T16:13:00.009Z

Fairchild Semiconductor lead times have increased from 51 weeks to 60 weeks.
Atmel lead times have increased from 26 weeks to 28 weeks.
Cypress lead times have increased from 18 weeks to 22 weeks.
Samsung lead times have decreased from 28 weeks to 20 weeks.
Texas Instrument lead times have decreased from 31 weeks to 24 weeks.
Vishay lead times have decreased from 40 weeks to 38 weeks.

Once again, like November, there has been a combination of manufacturer lead times both increasing and decreasing when analysing in December.

However, interestingly we have also experienced the highest ever manufacturer lead time of 60 weeks, from Fairchild Semiconductor, since we have been analysing (from November 2009). This is an extremely significant increase and one that shows the electronics industry remains unpredictable, especially as Gartner reported last week that "the semiconductor market rallied in 2010". If the industry is set to have a record breaking 2010 and continue to grow, will electronic component manufacturers be prepared enough to meet the growing demands?

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Are There Still Electronic Component Shortages?

2010-12-13T16:55:00.000Z

A recent article from Ron Schneiderman at Electronic Design, states "Are there still component shortages, like most things in life, it depends on whom you talk to."

The article summarises different industry sector views on component shortages, ultimately identifying all the constraints regarding shortages. E.g. supply chain catching up with unrealized demand.

I think that from this article we can once again recommend that it is best practise to beat component shortages by planning ahead wherever possible.

To learn more about the Cyclops Scheduling Service, please click here!

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Cyclops Winter Wonderland Snow Shower!

2010-12-01T13:14:00.000Z

Recent snow showers this week have made the Cyclops head office in York look like a winter wonderland, take a look...

The Cyclops Group Successfully Exhibit At Electronica 2010 In Munich, Germany

2010-11-26T16:54:00.000Z

The Cyclops Group, a global electronic component distributor successfully exhibited it's services at Electronica 2010 in Munich, Germany, from 9th - 12th November.

The stand exhibited information from the Cyclops Groups services including...

For more information and highlights from the show please click here NOW!

Handy Table of Top 14 Manufacturers Lead Times Updated 22nd November 2010

2010-11-22T13:44:00.011Z

Atmel lead times have decreased from 28 weeks to 26 weeks.
Cypress lead times have decreased from 20 weeks to 18 weeks.
ST lead times have decreased from 32 weeks to 30 weeks.
Fairchild lead times have increased from 50 weeks to 52 weeks.
Samsung lead times have increased from 24 weeks to 28 weeks.

This month there is a mixture of manufacturer lead times both increasing and decreasing.

I think that this is starting to show a more unstable electronic component market in comparison to previous months. Ultimately with the current lead times, weather changes and the holiday season approaching, I can only recommend to plan ahead wherever possible and start to think about 2011 production requirements. To learn more about the Cyclops Scheduling Service please click here!

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 22nd October 2010!

2010-10-28T16:31:00.000+01:00

ON Semiconductor lead times have decreased from 40 weeks to 28 weeks.

ST lead times have decreased from 36 weeks to 32 weeks.

Vishay lead times have decreased from 40 weeks to 30 weeks.

10 manufacturers' lead times have remained stable since the last month's check.

Atmel lead times have increased from 18 weeks to 28 weeks.

This month most manufacturers' lead times have either stayed stable or started to decrease.

I think that this is either a sign that our market is starting to recover or that we are being driven to design in alternative electronic components for manufacturing processes.

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 20th September 2010!

2010-09-27T09:38:00.000+01:00

Samsung lead times have increased from 18 weeks to 24 weeks.

Atmel lead times have increased from 16 weeks to 18 weeks and some parts could be on allocation too!

This months manufacturers' have remained quite stable in comparison to last month. However Fairchild, Freescale, Infineon, ON Semi, ST, Texas Instruments and Vishay continue to have lead times over 30 weeks!

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Electronic Component Shortages Obstruct Manufacturing Supply Chain

2010-09-20T16:55:00.001+01:00

The electronic manufacturing supply chain is currently experiencing a severe shortage of many finished electronic components. According to iSuppli, manufacturers in the electronics sector have had a challenging past few months. Many of the raw materials that have been in short supply earlier in the year are now becoming available to produce many of the parts currently on allocation. However, manufacturers' are finding they're not in a position to be able to finish manufacturing the parts due to a variety of factors which include: increasing raw material costs, employment increases and increased transportation expenses.

Thomas Dinges, iSuppli Electronic Manufacturing Service Analyst states, "These supply chain blockages arose from vendors' inability to rapidly increase production to meet demand after the recession." He goes onto say that "iSuppli believes that the current trend, in which electronics inventories are being weighed down by an overwhelmingly large percentage of raw materials, will continue for some time to come, given that more product in kits are waiting to be finished."

So, at a time when many manufacturers are now becoming more selective with regards to pricing, what is more important delivery of key components or the price? What do you think?

I think to avoid severe price increases it is best practise to have good communications with your supply chain and be prepared!

Hopefully electronic component buyers are finding the electronic components they require, but may experience difficulties when buying allocated stock. Have you thought about scheduling electronic component requirements? When you schedule your electronic component requirements out for the year ahead, you are guaranteed a fixed price and will save on storage space. Click here for more information on scheduling!

It is also essential to keep up to date with the latest lead time changes, check out our Handy Table Of Top 14 Major Manufacturers Lead Times!

What Will Happen To The Electronic Component Market in 2011?....Uncertainty Ahead?

2010-09-02T10:01:00.000+01:00

With fresh signs of the electronic component market growing too quickly, just how long will our market remain steady for?

"I am sorry to be the 'party pooper' but the current billings growth trend exhibits all the signs of an it'll all end in tears' scenario," stated AFDEC Chairman, Adam Fletcher.

My view is to proceed with caution, as some reports are warning us of a 'double dip' recession ahead. I think it is best to carefully balance your electronic component requirements with real manufacturing demand, communicating your exact needs to everyone within your supply network. Failing to have a good balance of electronic component supply may jeopardise your manufacturing output or alternatively leave you with excess electronic components.

However, critics are right to be sceptical because we do not know how long the growth spurt for electronic components will last. There is much uncertainty as to what will happen in 2011, will the market continue to grow or will we recede into recession again? Only time will tell.

In the meantime, it is best to prepare your requirements for at least 1 year in advance, try a supplier with scheduling facilities and set agreements up to ensure you a smooth electronic component supply.

If you have any comments please post them below or email marketing@cyclops-electronics.com.

Rising Electronic Component Inventories But No Alarm Bells Ringing - Yet, iSuppli Says

2010-08-27T15:44:00.000+01:00

As demand is expected to increase during the coming months the semiconductor industry analysis firm iSuppli Corp are not concerned about chip suppliers reporting rising inventories.

iSuppli reported that midway through quarter 2 reporting period, total inventory from approximately 35 semiconductor component manufacturers climbed to $9.6 billion, up a strong 9% from $8.9 billion in quarter 1 - faster than the seasonal average of 3.2%.

Likewise, average days of inventory (DOI) grew, increasing about 4 days during the period to 73.2 days, up 6% from 69.3 days - a rate slower than the historical DOI seasonal increase of 9.6%, or 6 days.

Across the semiconductor market, management comments in earnings announcements have been extremely positive, citing strong results in various end applications and geographies. The solid quarter 2 results - based on higher-than- usual seasonal revenues, favourable Average Selling Prices (ASP) and innovative new products - are allowing companies to finally relax their vice grip on inventories, iSuppli believes.

Given the quick rise in demand, however, semiconductor suppliers are finding it difficult to restock to pre-recessionary levels. Products being shipped are intended to meet current orders, iSuppli has determined, and not meant for placement into inventory.

As a result, the current backlog is driving many semiconductor suppliers to increase capacity, although conservative capital spending appears to be the norm. Instead of committing to long-term capital investments for new facilities, suppliers often are investing cautiously in equipment to relieve constriction points in production. The exceptions to the rule are the large corporations - entities such as Intel Corp, and Samsung Electronics Co. Ltd, iSuppli believes.

Are large corporations exceptions to the rule? Please leave your comments below or email marketing@cyclops-electronics.com.

Read about what Texas Instruments are doing to improve lead times... click here NOW!

Texas Instruments Adding More Capacity & Facilities To Improve Lead Times

2010-08-16T15:04:00.001+01:00

Recent reports have shown that the electronics industry still remains to be suffering from the global shortage of electronic components.

However, I think one manufacturer, TI, has recently started to show very positive signs that their supply will continue to grow and improve. This is mainly due to them taking actions to add more capacity and facilities to their profile:

Opened the world's first 300mm Analog fab RFAB in Richardson (Texas).
Opened a new assembly/test facility at Clark (Philippines).
Purchased 300mm equipment form Qimoda for the RFAB.
Purchased 200mm tools for existing fabs.
Purchased Spansion facility in Japan, including two production facilities and nearly 1,000 manufacturing tools.

As TI was one of the first manufacturers to enter allocation back in 2009, many critics and media thought that they would remain with allocation/shortages for some time. However, with their future planning, development and actions taken to improve capacity and facilities, allocation and shortages should reduce...but only time will tell!

What do you think? Please leave your comments below or email marketing@cyclops-electronics.com.

Are You Finding Electronic Component Shortages A Strain?

2010-08-13T16:58:00.000+01:00

With demand for key commodity electronic components continuing to rise and lead times as high as 50 weeks (Fairchild Semiconductor, please see our Handy Table Of Top Major Manufacturers' Lead Times), you'll no doubt be feeling the strain as you search for electronic components that are vital for your continued production levels.

In addition, lower capacity combined with low inventories is keeping electronic component prices at a premium which means even when you are able to obtain the components in the quantity you need, the price you're required to pay is often very high.

The end result is you find sourcing harder, you have to wait longer and have to pay more!

Meanwhile, the electronic component manufacturers are enjoying a resurgence of their profits boosting due to the increase in sales, along with the tight demand. In fact, some are even reporting fiscal first quarter earnings having doubled in revenue and that new bookings have vastly improved.

I predict the demand for electronic components will remain extremely high throughout 2010 and will probably last through to 2011.

Every OEM & EMS company I have spoken with is building closer links with specific suppliers and distributors to protect sources of supply, which is very important in the current market.

How do you think the electronic component market will turn throughout 2010-2011? Let me know email marketing@cyclops-electronics.com or alternatively please make your comments below...

Lead Times Extended For Key Electronic Components

2010-08-04T17:33:00.002+01:00

According to iSuppli several key components are in a state of "critically short supply" leading to rising prices and deliveries. Components include analog ICs, memory ICs, standard logic ICs and power management discretes such as low-voltage MOSFETs and tantalum capacitors.

The lead time in June was 20 weeks for power MOSFETs and small signal transistors, and 18 weeks for bipolar power devices and rectifiers. Normal lead times for such products typically run to approximately 10 to 12 weeks.

According to iSuppli, high demand for analog ICs has driven up ASPs (average selling prices) for the last three months. Demand is expected to continue to outweigh supply until the end of 2010, pushing lead times and ASPs.

The situation is similar for capacitors and standard logic ICs, iSuppli reported. For standard logic ICs, allocation is continuing for the fourth month and likely to persist until the end of Q3.

Further, supply and demand in the discretes market remains heavily imbalanced. iSuppli noted that lead times have doubled since July 2009 and continue to extend. Imbalances between supply and demand in the market are expected to last until the end of the year.

iSuppli reported that the situation is slightly better in memory ICs, where expected future demand and inventory rebuilding efforts are being balanced off by currently soft sales as well as falling prices. Still, the company noted that signs point to possible severe shortages in NAND flash during Q3, especially if suppliers are unable to achieve an optimal mix in production.

iPod's, iPad's, Netbook's, 3D Televisions High Product Demands Are Putting A Massive Strain On Electronic Component Supply

2010-07-23T12:57:00.001+01:00

We have seen the launch of the latest, must-have gadgets such as iPod's, iPad's, Netbook's, 3D Televisions, etc, take the world by storm: an iPad is sold every 2.3 seconds.

These high product demands are putting a massive strain on electronic component supplies....

During the recession I noticed many manufacturers either cut productions, shut down factories or lay off workers. Although this may have been an effective short term fix, now many manufacturers are left un-prepared for the high increase in demand for key electronic components for the new must-have gadgets. This has therefore resulted in long lead times and shortages causing major delay in production schedules.

I think the situation can be resolved by becoming more strategic when planning production schedules and working closely with suppliers. Especially when this month saw Fairchild Semiconductor lead times' enter into 50 weeks, click here to view our Handy Table Of Top 14 Major Manufacturers' Lead Times!

Here are some interesting articles regarding the supply strains...

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10659669&ref=rss

http://www.ibtimes.com/articles/32629/20100705/semiconductor-electronic-component-texas-instruments.htm

Let us know what you think, please comment below or email me marketing@cyclops-electronics.com!

Handy Table of Top 14 Manufacturers Lead Times Updated 21st July 2010!

2010-07-21T15:30:00.000+01:00

Fairchild Semiconductor lead times have increased from 47 weeks to 50 weeks.

ON Semiconductor lead times have increased from 28 weeks to 40 weeks.

11 manufacturers' lead times have remained stable since last month.

Samsung, Atmel, Toshiba and ST all remain on allocation.

Atmel lead times have become slightly better... going from allocation to 26 week lead times, however some are still on part allocation.

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 23rd June 2010!

2010-06-23T16:15:00.002+01:00

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note that Atmel, Samsung, ST and Toshiba are all entering into allocation. Recent news articles confirm that chip inventory is remaining at very low levels, as manufacturers do not have the production levels in place to keep up with the demand.

The supply situation still remains very critical at this current time, as most manufacturers are now entering allocation scenarios. We don't expect any improvement throughout 2010, it may last into 2011, possibly longer? This is why I can't stress enough... scheduling components is critical for the everyday electronic component buyer.

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Alcatel & Ericsson Blame Electronic Component Parts Shortage For Steep Loss

2010-06-23T15:48:00.002+01:00

I have recently found an interesting article stating: A shortage of basic electronic components that has hurt Alcatel-Lucent and Ericsson among others could last into the second half of 2011. Click here to read the article.

Alcatel Lucent, which makes network equipment for AT&T, Verizon and Sprint, reports that the U.S. Economic recovery was accelerating so rapidly it was unable to obtain enough basic electronic parts to meet the demand of U.S. Operators.

The shortages contributed to a 9.8 percent decline in Alcatel-Lucent's sales in the first quarter, which fell to €3.25 billion, or €4.16 billion, from €3.6 billion a year earlier. The net loss at the Paris-based company, which was created by the 2006 merger of Alcatel of France with Lucent Technologies, widened to €515 million from a €405 million loss a year earlier.

Ericsson, the global market leader in telecom network equipment, had also cited a supply shortage when it announced a 9 percent decline in first-quarter sales on April 23.

For them and others this could lead to shorter supplies which lead to higher costs and probably lower cash flow as they build up their inventory.

However, iSuppli expects global semiconductor industry sales to rise to 30% this year to USD 300 billion, driven by consumer demand for computers, phones and TVs.

I have also found another article which confirms what I have found, click here to read it NOW!

Please feel free to make your comments below...

The 4 Reasons Why Cyclops Is Ideally Placed To Help You Avoid Electronic Component Shortage Issues In An Uncertain Market...

2010-06-09T15:55:00.003+01:00

With an uncertain electronic component market it is essential purchasers have a strong, reliable supply chain. Here at Cyclops we have developed a range of services to help combat electronic component shortage issues, these are:

1. Lead Time Table
Cyclops produce a Handy Table Of Top Manufacturers' Lead Times every month, which will help you keep up to date on the latest changes within our industry and ensure you avoid shortages and long lead time issues.
Click here to learn more!

2. Extensive Stock Holding
Cyclops Electronics hold an extensive range of electronic components in stock in our purpose built environmentally controlled warehouse in York, England. At the last count we were holding 72,339 line items of active, passive and electro-mechanical components.
Click here to learn more!

3. Price Match Plus Promise
Our Price Match Plus Promise means you are guaranteed a cheaper price than franchised distribution on all stocked line items. That's 72,339 line items to be precise! If you find a cheaper price from franchised distribution, tell us before you make the purchase and we guarantee to be cheaper providing the terms and conditions* are met.

Click here to learn more!

4. Cyclops Scheduling Service
The Cyclops scheduling service helps you improve productivity, reduce costs, increase profitability and maximise quality. You forecast what you will be buying in the next year, we quote you on a years worth of stock, saving you time and money, and we'll hold your order in stock until you need it. Simple!
Click here to learn more!

If you have any issues and would like to speak to me personally, please email marketing@cyclops-electronics.com stating "shortage blog" or alternatively post your comments below!

Your Concerns About Electronic Component Shortages And Inventory Levels

2010-05-26T13:29:00.013+01:00

Although there are signs that the electronic component market is beginning to recover, with many businesses adapting and becoming more innovative, the trade press is still full of stories on shortages and long lead time issues.

I recently found an interesting article stating the multiple issues EMS/OEM firms are continuing to face, due to the current market conditions:

OEM desires to increase efficiency in supply chains will continue to pressure lead times and inventory levels.
Many OEM's are expected to continue to follow commodity purchasing patterns, which erode profits for EMS/ODMs.
The shift in the mix of computer and consumer products to lower priced products will continue to place downward pressure on revenues.
Consolidation of OEMs and suppliers will continue even as emerging entrants from developing regions begin to impact global markets.

(Source: Evertiq) Please click here to read the full article!

Are you currently experiencing any of these or other issues?

If so, let us know how you've been affected by the current manufacturers' lead times, by emailing marketing@cyclops-electronics.com. I would love to hear your comments and views, it may help others too!

If you have found this post interesting you may also like: The 4 Reasons Why Cyclops Is Ideally Place To Help You Avoid Electronic Component Shortage Issues In An Uncertain Market...

Handy Table of Top 14 Manufacturers Lead Times Updated 14th May 2010!

2010-05-20T11:07:00.007+01:00

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note that Fairchild Semiconductor lead times have increased to a massive 47 weeks, up 27 weeks from last month! This is also the largest lead time we have experienced since we have devised the 'Handy Table' updates. Vishay have also increased their lead times up to 40 weeks, up 12 weeks from last time.

The supply situation still remains very critical at this current time, most manufacturers are very close to allocation scenarios. We don't expect any improvement for the next couple of months, possibly for the rest of 2010. This is why I can't stress enough... scheduling components is critical for the everyday electronic component buyer.

If anyone has any comments on the recent changes and updates do remember to let me know, email marketing@cyclops-electronics.com.

Electronic component lead times increase and the recession is over but manufacturers struggle with mounting logistic challenges

2010-04-30T15:06:00.008+01:00

Component manufacturers reduced production capacity and inventory to the lowest levels possible. The result meant many major manufacturers having to increase lead times (some as high as 60 weeks).

The updated Handy Table of Top Major Manufacturers' Lead Times Table shows Freescale is the only manufacturer increasing lead times significantly and all other manufacturers have stayed stable. However, they are not back to their usual lead times; shorter lead times or ex-stock.

The end of the recession would be absolutely fantastic news, however, have electronic component manufacturers drastic actions, during the recession, jeopardised our industry?

Make your comments below or email marketing@cyclops-electronics.com.

Innovative manufacturers and independent distributors within the electronic component industry help combat the fragile recovery

2010-04-16T14:50:00.087+01:00

Although the recent news reports have portrayed the 'downturn' as having a majorly negative impact on all industries. I have to say that I think many organisations have responded very quickly to this recession, becoming flexible, adaptive and more innovative, with new ideas and services for their business.

If you think about which products have thrived during the recession it is goods such as netbooks as opposed to laptops or Nintendo Wii's as opposed to Playstation 3's. Consumers are purchasing the low cost, ultra portable, more economical alternatives which provide solutions to consumer needs.

Some of you may remember previous recessions, such as 1980, where the downturn was even worse, as was the impact upon the industry. It took much longer to recover and it was a lot more detrimental. So it is interesting to point out that this time we are recovering much faster... I think this is mainly due to corporate innovation and possibly better supply networks.

More importantly, we are now seeing new products and technology striving to "go green" and organisations contributing to helping the industry to "combat counterfeit goods", especially within an industrial electronics market. New products driven by green energy production, waste management and power management have all appeared recently.

I do feel that manufacturers are learning, from past crises, to maintain innovation and to be better equipped to deal with recessions. Especially in their ability to continually build strong relationships with supply partners that can deliver shortage components. Components Research tells us that while component buyers at large manufacturers spend only 1-2% of their annual component budget on shortage requirements, it takes up to 40% of their time.

Cyclops has also risen to this challenge by incorporating policies and services which have made our customer's experience more delightful than ever before...

Cyclops Price Match Plus Promise

Cyclops Scheduling Service

Handy Table Of Top 14 Major Manufacturers Lead Times

Counterfeit Component Policy and Procedures/Preventative Measures

Take a look at the latest newsletters from IDEA I find them really helpful, http://www.ideaelectronics.com/page.asp?pag=421

Do you have any innovation success stories within the electronic component market? Let me know, email marketing@cyclops-electronics.com.

Chip Manufacturers Playing A Canny Game – Another Factor To The Current Electronic Component Lead Time, Shortage and Allocation Issues?

2010-04-09T12:58:00.007+01:00

I have recently found the following statement in a news article, that has got me wondering...

"Chip manufacturers continue to play a canny game, holding back on capex while enjoying the higher prices that follow shortages."

Are manufacturers simply playing a game with us?

Many manufacturers seem to be holding back on production and inventory in order to keep prices stable, after unpredictable years in 2008/2009. This is completely understandable, but as our industry is most definitely recovering, these drastic measures seem a bit far fetched!

Here at Cyclops you can be reassured to know that we have over 72,339 line items held in our warehouse in York, England. Not only this, we also have access to over 10.2 million lines of electronic components worldwide, through the Cyclops Group.

If you would like any further information please email marketing@cyclops-electronics.com

Are Vigorous Measures In 2009, Responsible For Electronic Component Lead Time, Shortage and Allocation Issues?

2010-03-23T14:35:00.001Z

"The global semiconductor business is now more profitable than it has been at any time in the last decade!" Source: CIE Magazine.

Could this success be a result of the industry's aggressive management of costs and capacity, throughout 2009?

Many organisations throughout our industry reacted quickly to the global recession, by a vigorous concentration on specific market segments and conducting a more targeted approach to customer requirements.

This has enabled improved profit margins, greater efficiency and the removal of unnecessary overheads. Not only this, organisations have kept up consistent brand value, which is increasingly more and more important, especially in our current market environment.

Component manufacturers are now benefiting from the vigorous measures taken in 2009. Were these measures solely responsible for Lead times, Shortage and Allocation or was there an unexpected upturn in manufacturing?

What do you think? Make your comments below or email marketing@cyclops-electronics.com.

Handy Table of Top 14 Manufacturers Lead Times Updated 15th March 2010!

2010-03-17T17:15:00.010Z

I have recently updated the handy manufacturers lead times table, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of Top 14 Major Manufacturers Lead Times, it is interesting to note that most of the manufacturers lead times have still stayed stable since I last checked. Only 2 manufacturers have increased their lead times, which was Infineon & ON Semiconductor. TI are still not easing up on their 31 week lead time, which still stays the same. However, ST have actually decreased their lead times.

The supply situation is still very critical at this current time, most manufacturers are very close to allocation scenarios. We don't expect any improvement for the next couple of months, possibly for the rest of 2010. This is why I can't stress enough... scheduling components is critical for the everyday electronic component buyer.

If anyone has any comments on the recent changes and updates do remember to let me know, marketing@cyclops-electronics.com.

Smart Planning of Electronic Components & Electronic Equipment Proves Successful, Profitable & Provides Smooth Production

2010-02-24T17:00:00.003Z

I have recently found the following statement in a news article, that has got me wondering...

2009 saw the UK electronic component and electronic equipment market hit hard with the economic crisis. AFDEC predicts that slow growth will not appear until the end of 2010.

How do you feel about the electronic component and electronic equipment market will turn in 2010? Please comment below or email marketing@cyclops-electronics.com

Personally, I think that we will have a large increase within the electronic component and electronic equipment market in 2010. It has been proved that organisations which are planning ahead for 2010/2011 are more organised and aware of the market around them, meaning they are prepared for all issues that may occur and can combat them immediately.

I have become more positive, primarily because of the continuing success of my clients, where they are managing productivity and reducing costs by using the Cyclops Scheduling Service, providing BOM's with 6 to 12 month requirements, some even 2 years.

Safeguarding businesses is one of Cyclops' main priorities and we are seeing some distribution networks failing to meet contracts because they cannot back fill their allocated stock in time. By scheduling orders with Cyclops we guarantee 100% of orders are fulfilled.

There is no denying that there will be further challenges and pain appearing in the market and 2010 will bring many challenges for industry, customers and suppliers alike. But planning and preparing will help assist you in overcoming them, resulting in increased profit and smooth production.

If you would like any further information please email marketing@cyclops-electronics.com

Handy Table of Top 14 Manufacturers Lead Times Updated 15th February 2010!

2010-02-19T14:30:00.003Z

Handy Table of Top 14 Major Manufacturers Lead Times Updated 15th January 2010

2010-01-22T09:58:00.000Z

Are people in panic mode or is it just the media over exaggerating the current allocation/lead times & shortages 'crisis'?

2010-01-15T15:33:00.004Z

Recent reports show that TI acknowledge that they are suffering from supply problems. (Click here to view the article) “Supply definitely remains constrained,” said TI.

TI components have the highest lead time across the market. However, over the last few months their lead time has continued to be stable, whereas news reports hint that TI lead times are ever increasing.

As you may know I am not the biggest fan of analyst blather, but this article has brought to my attention 2 possible theories. Are people in panic mode or is it just the media over exaggerating?

I would be interested to get other opinions on this 'hot topic' the so called long lead time/shortage/allocation 'crisis', are people in panic mode or is it just the media over exaggerating?

Are there any parts that anyone is particularly struggling with?

Let me know by commenting on this blog below or emailing marketing@cyclops-electronics.com

Happy New Year 'Allocation, Lead Lime & Shortages' Blog Readers!

2010-01-14T15:58:00.026Z

May I take this opportunity to wish all my, 'Allocation, Lead Time & Shortages' Blog readers a belated Happy New Year for 2010.

With lots planned for 2010, I am pleased to announce that Cyclops are celebrating their 20th anniversary this year. I have to say this milestone not only has been achieved through the hard work and dedication of all our staff, but with the support of our clients as well.

Watch out for our 20th anniversary promotions, industry updates, special offers, treats and much more! www.cycelect.com

Recent snow showers over the Christmas period made the Cyclops head office look like a winter wonderland. Take a look at our CCTV image...

Handy Table of 14 Top Major Manufacturers Lead Times

2009-12-04T15:47:00.001Z

While speaking to buyers of electronic components, allocation is a key issue at this present time. This got me thinking...wouldn't it be easier to have all major manufacturers long lead times in one place?

I would like to share the following table with you, which shows the top 14 major manufacturers lead times, please click here NOW!

From the Handy Table of 14 Top Major Manufacturers Lead Times, it is interesting to note that TI currently have the most types of product groups, with long lead times up to 31 weeks.

This is fast becoming a similar story amongst many electronic components buyers. They are telling independent distributors that their franchised distribution supplier has either extremely long lead times or the parts are on allocation; which means they end up without many critical components.

By using an independent distributor, they can help source many different types of electronic components old and new, with many holding their own stock which can be available on a next day delivery! Not only that you can schedule out the electronic components you require for the next year ahead.

So don't rule out independent distribution as this could be your lifeline to ensure a smooth production process!

If you need help with allocation or shortage parts give me a call, ++44 (0) 1904 415415, I would love to be of service! Alternatively please visit www.cycelect.com

How To Safeguard Your Business Against Allocation?

2009-11-19T09:46:00.003Z

Allocation, allocation, allocation. Even if you have only been in the industry a few years you will be familiar with this word (and it doesn’t matter where you are). TI, ST and Atmel are some of the manufacturers that have increased lead times significantly. Buyers are facing lead times as high as 31 weeks and some manufacturers are not even quoting on some parts as they cannot guarantee delivery. It will unfortunately also mean that prices are likely to increase. Delays in supplying components can have a major effect on margins for OEM’s and CEM’s. Contractual obligations involving delivery dates, cost and a right to vary quantities may lead to manufacturers buying more than enough to meet initial production runs and often end up bearing the cost of holding excess inventory or they may risk facing penalties.

However, these risks can be minimised by scheduling components through a flexible, independent distributor. It is a simple and cost effective solution for buyers to ease supply problems and maintain cash flow when margins are under pressure. Scheduling up to 12 months in advance with an independent distributor can give you fixed prices and reduce risk of ‘line down’ or stoppages through allocation problems.

5 Steps To Safeguard your Business Against Allocation

Step 1.
Once you have the contract forward the electronic component requirements, with projected delivery dates, to your independent distributor.

Step 2.
Review the quotation they provide. Feedback is always welcomed.

Step 3.
Place the order for the full quantities with anticipated delivery schedule. Actual dates, quantities and frequency can be changed to suit your needs.

Step 4.
Let the independent distributor smooth this part of your requirements, easing your cash flow, allowing you to focus on the rest.

Step 5.
Relax!

Would you like to discuss this subject in more depth or do you need to talk about reducing lead times and learn how other companies are doing about this subject. Drop me a line, allocation@cycelect.com.

For more information about the scheduling service from an independent distributor, click here now!

Welcome to the Allocation, Lead Times & Shortages Blog!

2009-11-16T10:32:00.002Z

It is my pleasure to welcome you to our new Allocation, Lead Times & Shortages blog!

This blog brings you the latest news and developments on Allocation, Lead Times and Shortages in the electronic component market.

I welcome any suggestions, questions or feedback you may have on this hot topic, please email allocation@cycelect.com.

Daniel