Dear customers and vendors, welcome to the Market Insights-Newsletter from Quiksol that delivers timely and relevant market intelligence report to the electronics supply chain industry. We hope you find this issue of Market Insights valuable, and we welcome your feedback at Quiksol@quiksol.com.cn
In December, the demand of TI was slowing down due to the fluctuation of the pricing and difficulty of getting the stock.
1. Arrow has delinquent small and medium size customers since Dec2020 till Jan 2021. Thus they continue to delay shipment due to Dec2020 & Jan2021 shipment backlog.
2. Due to internal re-structure between TI and Arrow, the standard lead time has increase to 35 weeks and some special price has been cancelled, such as TPS5401DGQR, TPS7A8001DRBR & TLV803RDBZR.
3. Distributor’s shipment control become stricter, if you have any ongoing LT order, you may monitor closely if shipment still on track.
Maxim’s recent demand was relatively low with shortage mainly with automotive application and optical modules, such as MAX17055ETB. In general, Maxim products supply remain stable with low price volatility.
Their delivery lead time has stretched from 8 to 10 weeks to about 20 weeks due to a wafer supply shortage. It is advisable to reconfirm delivery lead time before receiving order.
The increasing of the lead time will generate shortage opportunity in the market. We will continue to follow up and monitor closely on Maxim.
1.NXP's current standard lead time is 16 to 20 weeks, but experiences frequent delivery disruption and causes lead time to stretch to 26 weeks;
2.NXP has supply issue to the automotive applications. In view of more workers working from home due to Covid1, the demand for automotive has declined causing shut downs of automotive factories. This has also led to a surge in demand for consumer products such as smartphones, computers and causing shortage of epidemic prevention materials. A large amount of production capacity has been transferred to consumer electronics and anti-COVID 19 materials. Now that the automotive demand has regain some traction, the industry is still experiencing insufficient production capacity and shortage of wafer causing shortage of devices such as TJA1042/1044/1043/1055, UJA1169/1167 , TEF6686, etc.;
3.The supply of pressure sensor used in anti-COVID 19 application has been recovering. However with the recent resurgence of Covid19 around the world, these sensor is anticipated to encounter supply shortage again;
4.The MPU headed by MCIMX, especially the part related to the automotive application field, is in short supply, such as MCIMX6D6Axxxx, MCIMX6Q6xxxx, etc.
1. Due to increasing demand and low product capacity, Altera’s lead time has increased lead time by additional 6 to 8weeksin recent months. On December 4, 2020, , Altera announced a notice of discontinuation on ARRIAGX/STRATIX II/MAX II/MAX700 which affected EPM570T144C5N, EPM240T100I5N, etc. Quiksol recommends to buffer stock in preparation to upcoming shortages.
1. capacitors, inductors, especially filters, duplex SAYF、DLW、DLM 、DL 、DLP and other components supply are still tight. The delivery period has not improved significantly causing with many shortages;
2. The GRM multi-layer ceramic capacitors also appear supply tension, especially with 105,106,107,226 and other high capacitance series. The automotive application supply shortage also causes these prices towards an upward trend.
3. The factory has increased distribution on products such as special filters, signal regulation, antennas and so on.
STM is not alone, as most of the chip price increase unpredictably till now without a typical cause. STM32F103VCT6 has price in the one dollar range, but has since climb to about seven dollars all within a period of a quarter. The market changes is rapid and not giving any leeway for prediction. Those who have planned before hand could have caught the wave and made some decent profit. On the other hand, those who have not planned before hand have entered the market undeterred in this market turmoil. The opportunities remains for those who are prepared and for those who seize the opportunity.
The STM delivery lead time is still unpredictable and backlog prices have to be reconfirmed. If the supply and demand continues to be worsened, the current increased price might as well to become the standard cost.
1. Since January Broadcom’s demand has slowed down significantly. Presently, the main demand comes from some major customers using switches such as BCM56850 and BCM56870.
2. With the increased deployment of 5G technology causes related materials to be out of stock. and also WiFi 6, Bluetooth, Pon related products. These includes BCM43, BCM67, BCM68 series, etc. It is anticipated that these supply with be tight throughout 2021.
3. Broadcom has stretched the lead time to 50 weeks recently. This lead time stretch is typically not acceptable by most customers. With this current trend, Q2 delivery is unlikely to materialize. It is recommended that customers should buffer stock in preparation. Otherwise, there will be a need to absorb huge negative price variance down the road.
Qualcomm has improved some deliveries recently, but with most lead time remains at about 30 weeks accordingly to factory’s allocation of shipment. The increased in 5G technology demand causes networking products to encounter shortages. In particular, MPN such as AR8033-AL1A &AR8035-AL1A with pricing doubling. The QCA9531-BL3A/QCA9882-BR series are also in serious shortage with no stock availability. It is unlikely the situation will improve in Q1 2021. It is recommended that customers should pull in their supply dampened the effect.
Nevertheless, Quiksol is able to support the BLUETOOTH chip CSR8670/CSR8675 for TWS application. Please feel free to send enquiry to Quiksol for more details.
1. Microchip will raise price again with official announcement to be on 2021.1.4. The new prices will be effective from 2021.1.15. According to the agent, the price adjustment plan of the package covers almost the whole product line and the increase range from 5% to 10% with some products projected to rise more than 10%. The price increase of Microchip will be based on delivery date. As such, we recommend to discuss through with the customer and o reconfirm with suppliers on the backlog.
2. The December surge in automotive demand has also affected Microchip’s supply causing price fluctuation. However, the automobile application is specific with not many users, as such these devices are not a good commonly traded via the open market. There has been an increase in ethernet chip demand at present, such as LAN8710A,LAN8720A which are experiencing shortage.
3. Quiksol has long-term demand for Microchip devices. Please send us any availability on hand and discuss with us how we could synergize.
ON Semiconductor’s demand has been strong since last December. Most of the shortages are related to automotive applications. These include power management IC, IGBT, power Mosfet, as well as, CMOS sensors. Some sensors has lead time as long as 50 weeks. ON has a range of comprehensive power application devices to support the automotive applications such as IGBT, power mosfet, rectifier and power DC/DC convertors. ON has also 60% market share for automotive image sensor. ON is ranked top in image sensor application and the sole supplier to Tesla. This coupled with an increased adoption of electronics in the automotive and green car applications has caused a huge increase in automotive related devices such as NCVxxxx、NCPxxxx、NCSxxxx、Aptina MT9V/Pxxxx.
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