Several key commodity components in "critically short supply"

Analog, memory, discretes, capacitors and standard logic ICs are facing supply and demand imbalances that are pushing lead times out as much as 20 weeks, iSuppli reports.

By Suzanne Deffree, Managing editor, news -- EDN, July 2, 2010

Demand is exceeding supply for various key commodity components in the electronics supply chain, putting several of these components in a state of "critically short supply," according to a report from iSuppli Corp.

That is causing prices to rise and deliveries of parts to customers to be delayed at "worrying lengths," the market research company said.

ISuppli noted extremely tight availability for widely used analog ICs and memory ICs. The supply situation is even more critical for standard logic ICs and power management discretes such as low-voltage MOSFETs and tantalum capacitors, which now are experiencing shortages and effectively are on allocation status, meaning suppliers are unable to respond to un-forecasted demand, according to the research company.

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.

"When lead times enter the 20 week range, they indicate a major schism between component supply and demand," said Rick Pierson, senior analyst for semiconductors and component price tracking at iSuppli, in a statement. "Supply constraints for electronics and semiconductor components might not come as a big surprise amid the present market rebound. However, specific market and pricing trends are spurring varying degrees of short supply depending on the component market."

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 troubling signs point to possible severe shortages in NAND flash during Q3, especially if suppliers are unable to achieve an optimal mix in production.



 

iSuppli figure: Lead times for key electronic components in weeks
	Bipolar power	Power MOSFETs	Small signal	Rectifiers
Jul-09	6	10	8	8
Aug-09	6	10	9	8
Sep-09	6	10	8	8
Oct-09	8	14	10	10
Nov-09	8	14	10	10
Dec-09	10	16	10	12
Jan-10	10	16	10	12
Feb-10	12	20	12	12
Mar-10	16	20	16	16
Apr-10	16	20	16	18
May-10	16	20	20	20
Jun-10	18	20	20	18
Q3 2010	18	20	20	18
Q4 2010	18	20	20	18
Source: iSuppli Corp., June 2010