Lead Times head on down except for power
The trend is partly due to lower consumer demand and heightened raw material costs.
Lead times for power technologies are stabilising or growing as supply will continue to be limited throughout Q2.
Production costs remain high due to inflation, raw material prices and manufacturing backlogs.
Discrete and Optoelectronics – The product market for discrete devices and optoelectronics is experiencing a slowdown due to the ongoing market correction and high inventory levels. The high stock levels have stabilized and are expected to remain at high levels throughout Q2. Lead times have been reduced due to lower consumer demand. However, demand for these components from the automotive, industrial and energy sectors is stabilizing or growing. Lead times are generally decreasing into Q2 except for power technologies where they are still limited in supply until 1H 2023.
Passives – Lead times have been reduced for standard technologies but electrolytic, hybrid Capacitors, and special-purpose resistors have been extended. Automotive products are also experiencing extended lead times with no signs of easing yet. Raw material prices have a significant effect on the pricing in this market. Demand for passive components is expected to increase significantly in demand. This increased demand, along with the high quantities required per board, will result in factory capacity limitations.
Interconnect and Electromechanical – The inventory levels are increasing for connectors; lead times are relatively short with an average of 10-20 weeks. Lead times for relays are extended where they are estimated to be 30 weeks. Suppliers of these components are expected to increase prices due to raw material prices.
Microcontrollers, microprocessors and FPGA – As per Q1, the consumer market is slowing down and there is reduced global demand for goods made in China. The average lead time for these components is 22-26 weeks. NXP and Renesas have increased their prices since January and Microchip since March. Capacity issues in Q1 have resulted in manufacturers continuing to impose NCNR (non-cancellable & non-returnable) terms for distributors and customers. There is still a backlog of manufacturing, especially in EMEA, and to help with the recovery, supply is expected to tighten again.
Analogue and Memory – The production costs for Analogue and Memory components remain high due to inflation, heightened costs, and declining disposable incomes. Price reductions are unlikely due to the costs of investment needed to improve capacity. .
Raw Material Prices:
|
Material |
Increase/Decrease |
Price Changes |
|
Copper |
↑ |
1.70% |
|
Nickel |
↑ |
4.60% |
|
Tin |
↓ |
20% |
|
Plastics (PE) |
↓ |
7% |
|
Lithium |
↓ |
26% |
|
|
|
|
Component Lead Times:
|
Technology |
Manufacturer |
Lead Time (Wks) |
|
Logic |
Nexperia |
26-45 |
|
26-52 |
||
|
Texas Instruments |
12-35 |
|
|
Linear |
STM |
16-40 |
|
Texas Instruments |
50-60 |
|
|
On Semiconductor |
12-16 |
|
|
Vishay |
14-18 |
|
|
Data Converters |
Analog Devices |
32-38 |
|
Texas Instruments |
25-70 |
|
|
STM |
30-35 |
|
|
Power Management |
STM |
30-40 |
|
Texas Instruments |
50-60 |
|
|
Infineon |
30-45 |
|
|
Analog Devices |
30-34 |
|
|
8 Bit |
NXP |
52-65 |
|
Microchip |
32-75 |
|
|
STM |
45-65 |
|
|
Infineon |
28-52 |
|
|
16 Bit |
Texas Instruments |
35-70 |
|
Infineon |
24-52 |
|
|
NXP |
52-65 |
|
|
Microchip |
32-75 |
|
|
STM |
45-65 |
|
|
32 Bit |
Microchip |
32-75 |
|
NXP |
52-99 |
|
|
STM |
52-65 |
|
|
Infineon |
20-52 |
|
|
DSP |
Analog Devices |
18-26 |
|
NXP |
52-65 |
|
|
Texas Instruments |
35-70 |
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