August 9, 2007

The IC Market Is Beginning to Show Signs of Picking Up

We have seen some signs in the IC market that things are picking up. We are getting days and / or weeks where the activity increases dramatically, with this activity primarily being paced by shortage requirements. The combination of the supply chain being stretched so tight and slight up ticks in demand are creating spot shortages and increasing activity. With so little of the "right" inventory in the market, the spot shortages can be difficult to solve. If the market continues to pick up as we head into the traditional build season, things will certainly get interesting.

Here are some current market trends:

Current IC shortages

  • Shortages for Maxim products continue as lead times are generally very long, stretching to 26 weeks++.
    There is increasing shortage pressure in Power Mosfets. Lead times (23-28 weeks) are stretching and direct supply is under allocation.

Embedded processors

  • Tight supply from Freescale, MCU and processors due to lead times stretching to 13-20 weeks. It may be even longer lead times for certain MPC series and, as a result, we are seeing strong demand. As for DSP products, price and lead times (8-15 weeks) remain stable.

Analog and logic products

  • Price continues to drop 5-10% due to decreasing demand and excess stock in market (including products like Commodity Amplifiers, Comparators, CMOS Single /Dual Gate and HC/HCT series.)

Passives


  • MLCC supply is stable with no shortages at this moment. Pricing pressure exists due to raw material cost increasing.No shortage for Tantalum Capacitors and other passives components. Lead times remain 6-14 weeks and pricing trend unchanged.

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