June 14, 2007

Quality is an issue in the general IC space

There have been some increases in activity in the board level component space, but it has been sporadic and not limited to any one product type. Most of the activity on shortages continues to be in TI, Siliconix, and Freescale. We have seen an increase in requirements from the military space, especially in diodes.

Quality concerns are becoming more and more of a hot button issue with customers globally. Few independents have the quality control resources and infrastructure to ensure their customers complete quality assurance. Converge has a strong team of procurement specialists and a staff of Electronic Component Engineers that is unparalleled in the industry. This team is dedicated to supplying customers with only 100% quality assured devices. In this volatile market, customers should be wary of bottom-barrel prices as this may be an indicator of suspect quality of the product. The old adage "you get what you pay for" is applicable here and lowest price may not always be the best value if the quality of the product is compromised.

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