Posted by Jenny Miller on Fri, Sep 03, 2010 @ 08:49 AM
“Electronics Contract Manufacturers Face Supply Chain Pileup”
As our economy turns around we see different affects still adding up. In the post-recession, post-stock market dive times, EMS manufacturers remain wary of keeping excess inventory on hand…to the point of creating electronic component shortages.
According to “Electronics Contract Manufacturers Face Supply Chain Pileup,” by Thomas Dinges on August 30, 2010,
“Component shortages have led to a traffic pileup in the global electronics supply chain, with major contract manufacturers facing a challenging supply imbalance characterized by tight inventories of parts and finished products and a glut of raw materials, according to the market research firm iSuppli Corp.”
Looking at the inventory breakdown according to major EMS providers, finished goods are at their lowest levels since Q4 2008.
“Judging from various earnings calls as well as numerous conversations taking place in the industry, semiconductor companies are citing extended lead times and parts shortages as a major problem, Dinges said.
A quick look at many component samples reveals that lead times have worsened for a wide range of semiconductor discrete devices, with lead times running as much as 100 percent longer than for the same period last year. The shortest lead times—at 10 weeks as of July—are for connectors, up from 5 weeks in July 2009. The longest lead times are for rectifiers and small signal discretes, now running at 20 weeks—a full five months compared to 10 weeks last year at this time.”
To read more from this article, click here.
When you look at these numbers, what is clear is that we’re in a electronic component shortage situation that varies in intensity depending on what you’re looking for. iSuppli sees this problem persisting through the end of the year, and our forecasts could take that into the first or even second quarter of 2011.
Fortunately we’ve done our homework, and have high level relationships with the right suppliers so that we can provide resources for you in this component shortage climate.
Please call, email, or search for components on IC Trends today for the part you need so that we can supply your team with the right components to fuel your continued success.
Posted by Jenny Miller on Tue, Jun 15, 2010 @ 09:44 PM
In attending the CALCE Symposium on Counterfeit Electronic Parts last week in Arizona, I walked away both challenged and encouraged. I have much greater clarity on this issue...and it really includes two main parts. It was incredibly beneficial having all the different pieces of the supply chain present so you could see different viewpoints and better understand the challenges they face. Let me give you an example:
- IC Trends buys a part from a distributor
- We don't have a great deal of confidence in the parts
- We try to get support from the Original Component Manufacturer (OCM)
- The OCM is reluctant to give support and until last week I didn't know why...
- Now I understand that the OCM has economic reasons motivating their decision, but moreover they don't want to be on the hook for parts that they could once verify but now can't because they've been outside of their control
Back to the conference- the counterfeiting problem breaks down into two main pieces:
1. The size of the problem and how many people it touches
2. The complexity of the problem
The counterfeiters are in many cases better financed and becoming more and more sophisticated as time goes by. Our abilities to detect counterfeiting need to increase. I learned a number of new methods by which we can make that happen. Some of those methods are relatively simple and will be implemented immediately, and some are more complex requiring the acquisition of capital equipment and that will happen over time.
In the coming weeks, I'll be blogging and sharing with you some of the methods gleaned from the conference. We'll be putting out literature on the immediate steps that IC Trends is taking to become even more dependable as a partner against counterfeiting. Some of the things you'll see in the next month are:
-Full disclosure of the IC Trends Anit-Counterfeiting Program
-The specific in-house testing and partnerships we have to ensure reputable components
-An outline of our visual inspection techniques
-The steps that we are taking to come into compliance with prevailing and relevant industry standards
IC Trends has always been motivated to excel as a trusted partner in the marketplace. When our customers have the need to move outside their normal supply chains we want to be the first, last, and most trustworthy call they make to satisfy their electronic component needs.
Best Regards,
Joe Stafford
Posted by Jenny Miller on Tue, Jun 08, 2010 @ 07:24 AM
It's here! The CALCE Symposium on Counterfeit Electronics begins today.
In Part I of our blog looking forward to the CALCE Symposium on Counterfeit Electronics, we talked about the scope of the counterfeiting problem within the electronic components industry. Today we want to talk about the future: questions we're going to be asking at the CALCE conference to determine how we're going to attack this problem in the days ahead.
Our questions look to these areas:
1. Are there any industry wide initiatives to combat counterfeiting?
2. What is the role that the government is playing in all of this? How effective will their role be?
3. Are there any software initiatives associated with the component counterfeiting problem?
4. What is GIDEP doing about this matter? Are they providing listings of problem parts/vendors?
5. What are some of the best practices that companies are employing in this arena?
6. How do companies envision getting out in front of the component counterfeiting issue? How do they plan on approaching this problem proactively rather than reactively?
The CALCE conference promises to be a forum inviting these questions and hopefully providing strategies to employ moving forward.
Again, we're tweeting the specific stats that provoked these questions...follow us on twitter @ ICTrends to get the facts and figures associated with the staggeringly large business of counterfeiting.
Posted by Jenny Miller on Fri, May 28, 2010 @ 06:48 PM
As we head into the CALCE Symposium on Counterfeit Electronics, questions about the scope of this problem and its impact on our industry are being asked. We know counterfeit electronic components are on the forefront of anyone in the world of component distribution. We know the scope of the problem is huge, according the US Department of Commerce; counterfeiting accounts for 8% of all global merchandise and can account for up to $1.2 trillion in lost sales.
As we look forward to the CALCE Symposium on Counterfeit Electronics, held this year in Phoenix from June 8th-9th, counterfeiting is on the brain. The problem is big and the answers seem few. As we look ahead to this week there are several areas we're hoping get touched on and an array of questions we're hoping get answered.
The first handful are:
1. How big is the legacy problem for these manufacturers?
2. How pervasive is the counterfeiting problem?
3. Who are companies turning to in counterfeit component situations?
4. What are the current market conditions for OEM's? Are they experiencing shortages and increased lead times and, if so, what are they doing about them?
5. Are companies taking an aggressive stance against questionable electronic components coming out of Asia (i.e. not buying product from there)?
We'll be tweeting the specific stats and updates before, during, and following CALCE Symposium on Counterfeit Electronics on these topics and more...follow us on twitter @ ICTrends to get the facts and figures associated with the staggeringly large business of counterfeiting. Follow this trail to get see what's happening at the important industry conference.
Posted by Jenny Miller on Thu, Apr 01, 2010 @ 03:26 PM
In the time we live in, the world has indeed become flat. As we strive to provide our customers with the right parts at the eleventh hour, we cannot turn aside from viable sources of electronic components that meet the needs of our customers. Most manufacturers in the electronics industry have been harmed by counterfeit components and we need to have the necessary tools to separate the authentic from the false.
According to the article World Hardware: Semiconductor Marekting Update, 53% of global semiconductor sales are going to the Asia-Pacific region. This makes up more than half of the global market, and we cannot afford to ignore the supply of components this region brings...especially when it comes to dealing with supply chain interruptions that need solutions yesterday.
Most quality problems originate in the Asia Pacific region, and companies must develop a strategy to procure quality electronic components from Asia Pacific.
Does your supplier have a strategy?
We do.
IC Trends is pleased to announce our partnership with White Horse, a firm specializing in the inspection and testing of electronic components coming out of China. White Horse's testing facility is located in Asia so that we can determine whether or not you are getting the right product before it exits the region and gets anywhere near your supply chain.
In this world, we have to be on top of our game so that you can be on top of yours. Our developed relationship with White Horse is one more way that IC Trends brings value to your business and earns our place as your go-to business partner for quality electronic components.
To learn more about White Horse, please visit their website and stayed tuned for more information on our role in stopping component counterfeiting on the IC Trends website.
Posted by Corey Woinarowicz on Wed, Feb 17, 2010 @ 03:08 PM
Capacitors, here we go again.....is it 1999 all over again? We were seeing so many new Kemet, Vishay and AVX requirements it made us wonder why. Then we found this article that might help explain:
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Shortage of Rare Earth Elements Could Thwart Innovation
By Jeremy Hsu, TechNewsDaily Contributor
12 February 2010 1:10 PM ET
Share Silicon may represent one of Earth's more common elements, but it transformed Silicon Valley into a high-tech corridor and helped usher the world into the Information Age...Rare earth elements, called "rare earths" by those who use and study them, often prove irreplaceable in green technologies and high-tech consumer products.
Yet the world's production of rare minerals relies mainly upon China, and the Chinese government warned last year that its own rising demand will soon force it to stop exporting the precious elements.
"Countries and companies that have or plan to develop industries that need rare earth minerals to make products are concerned about China's growing consumption, which they fear will eliminate China's exports of rare earths," said W. David Menzie, chief of the international minerals section at the U.S. Geological Survey (USGS).
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What do you think - We want your Feedback?
The article goes on to identify and discuss these rare earth elements: Europium, Lanthanum, and Neodymium. What does your experience or insight tell you in this reagard? Please post a comment and we'll pick up on hot topics in our next post. Click here to read the rest of the article.
Posted by Corey Woinarowicz on Wed, Sep 09, 2009 @ 10:49 AM
Wow, a huge increase in RFQ`s coming from the Aerospace and Defense sectors this month!
Posted by Corey Woinarowicz on Thu, Sep 03, 2009 @ 06:51 AM
Motorola and Texas Instruments requirements have increased a combined 73% over the last 10 days.
Posted by Corey Woinarowicz on Wed, Aug 19, 2009 @ 02:49 PM
We are seeing a substantial increase in the requirements this week, with Cypress, Motorola/Freescale and Analog Devices being the top manufactures.
Posted by Corey Woinarowicz on Wed, Aug 19, 2009 @ 02:40 PM
Welcome to the IC Trends blog, where we`ll updating daily on what we see happening across the electronic marketplace.